/ 30 November 2006

AA says no to Western Cape fuel levy

The Automobile Association (AA) will not support the proposed Western Cape fuel levy, the organisation said on Thursday.

”The Automobile Association is perturbed that the proposed Western Cape provincial fuel levy has been approved in principal by the National Treasury,” the AA said in statement.

While the organisation accepted that certain taxes are necessary to fund transport-related issues, the AA should not support this initiative of the provincial legislature.

It said Western Cape motorists are already paying substantially higher licence fees compared with other provinces and the levy will be ”prejudicing the already overburdened fuel consumer”.

During negotiations the AA held with the provincial government, it emerged that should such a levy be introduced there is no guarantee that money collected will be spent on roads or transport infrastructure.

Adding 10c to a litre of fuel will consequently make public transport more expensive.

”The people who can least afford it will be forced to live with higher transport costs and less disposable income for essential daily requirements.”

The AA called on the National Treasury to consider the vast impact that the introduction of an additional fuel levy will have before making their final decision.

It is only a matter of time before the other provinces place the same additional burden on vehicle owners, the AA said. — Sapa