Aren’t these proposed levies just indirect wealth taxes?
They’re not taxes. Each will have to meet national government approval, whether it is inflationary and investor-friendly. We don’t want to create a hostile environment.
National fuel levies increased by 10c in the Budget. Won’t an additional provincial levy — expected to net R300-million a year from 2006/07 onwards — overburden consumers?
We have a lower [fuel] price than the rest of the country because there is little transport cost involved. It’s that difference we are aiming at; we’re not going to get a fuel price higher than the rest of the country.
How will you use the extra revenue?
We want to dedicate [the fuel levy] to road maintenance so that motorists and big industry can benefit. It can’t be a slush fund; it is fiscally dedicated to roads. The fuel levy is probably the most attractive. We can collect the same way the Road Accident Fund levy is collected — it will show up as a definite item per litre.
What are the other levies for?
A million people visit the Western Cape every year. The hospitality levy will be dedicated to marketing the Western Cape as a tourism destination, exploring new markets, fast-tracking the empowerment component. Presently, we can’t even think about a terminal for passenger liners, even if there’s demand for it. We’ve also not developed the potential of the townships to receive tourism. The development [construction] levy will be dedicated to infrastructure development such as housing and economic development. It’s not as madcap as some people say!
Last year you warned that provinces were increasingly becoming social security agencies with little financial muscle for infrastructure and economic development …
It wasn’t about powers but the capacity of provinces to deliver. My response is getting new revenue streams. I can now show our determination [to deliver].