by GAVIN KELLY
JOHANNESBURG – THE Road Freight Association (RFA) notes the decision by the Minister of Finance to increase the fuel levy by 4% (petrol 16 cents and diesel 15c a litre).
This will be directly felt by consumers, as transporters cannot absorb increases without detrimental effects on their bottom-line (business sustainability). This means that Treasury is “finding” R4 billion towards the R75 billion shortfall from the previous iteration of the budget – however, this underscores that Treasury would rather tax citizens than cut the wasteful expenditure that has brought the country to where it is.
Transport will become more expensive, consumers will pay more, and the old adage that government can keep increasing taxes and levies to fund its uncontrolled spending remains true.
Government does not have money – it belongs to the taxpayers, and the time for accountability and responsibility has come.
Unfortunately, from June, the cost of logistics – 85% of which runs by road freight – will become more expensive.
The consumer will pay more, transport through South Africa will become more expensive, global supply chains will re-evaluate their routes and you and I will dig deeper into our pockets for goods and services and transport to work whilst the government has “found” a way to fund its salary and wage increases, as well as all the other vanity programmes it constantly runs.
This is not a good decision, neither in the medium nor long term.
NB: Gavin Kelly is CEO for the Road Freight Association.
