Experts are divided on whether or not South African motorists will soon have to pay more tax on fuel. <\/p>\n\n\n\n
On 21 February, Finance Minister Enoch Godongwana will announce the state’s budget as it struggles to balance its finances. <\/p>\n\n\n\n
In the Medium-Term Budget Policy Statement, Godongwana said that South Africa’s main budget deficit increased by R54.7 billion compared to 2023 Budget estimates. \u201cWe are now projecting a deficit of 4.9% of GDP compared to our previous estimate of 4.0%,\u201d he said.<\/p>\n\n\n\n
\u201cUnder these circumstances, measures to stabilise public finances and reform the economy to generate higher growth are essential.\u201d<\/p>\n\n\n\n
The minister added that the National Treasury will look to raise R15 billion in additional taxes in 2024 as the country looks for avenues to increase revenue.<\/p>\n\n\n\n
However, speaking in a pre-budget roundtable for the 2024 budget, Deloitte’s Billy Joubert said that the minister is unlikely to raise tax rates, with the R15 billion only making up a small percentage of the total tax collected. <\/p>\n\n\n\n
During the 2023\/23 financial year, the South African Revenue Service collected a total gross of R2,067.8 billion, with a total net collection of R1,686.7 billion after R381.1 billion in refunds.<\/p>\n\n\n\n
Responding to a question from BusinessTech, Joubert noted that it is unlikely that there will be an increase in the General Fuel Levy and Road Accident Fund Levy in the 2024 budget. <\/p>\n\n\n\n
This means that the General Fuel Levy will likely remain at\u00a0R3.95 – currently 18% of the retail price – while the Road Accident Fund should stay at\u00a0R2.18, roughly 10% of the current price.\u00a0<\/p>\n\n\n\n