South Africa\u2019s High Court dismissed a lawsuit filed by the opposition Economic Freedom Fighters party that sought to stop the government from raising fuel levies.<\/p>\n\n\n\n
The higher charges were proposed last month by Finance Minister Enoch Godongwana in his third attempt to present an annual budget that can secure parliamentary approval. <\/p>\n\n\n\n
Previous iterations were rejected by the Democratic Alliance, the second-largest party in the nation\u2019s 10-party coalition government, because they proposed hiking value-added tax.<\/p>\n\n\n\n
The EFF, South Africa\u2019s fourth-largest party, argued that raising fuel costs would hurt the poorest South Africans and undermine economic growth, and that proper procedures weren\u2019t followed to introduce additional taxes.<\/p>\n\n\n\n
Godongwana denied acting unlawfully and said that leaving the levy unchanged would leave a R3.5 billion hole in the state\u2019s finances that would have to be filled by curtailing services, increasing borrowing or raising other taxes.<\/p>\n\n\n\n
\u201cIt is ordered that the application is dismissed with costs,\u201d Judge Nathan Erasmus said in a ruling handed down in Cape Town on Tuesday.<\/p>\n\n\n\n
Godongwana\u2019s latest budget, which is currently being processed by lawmakers, has been welcomed by investors and endorsed by the business-friendly DA.<\/p>\n\n\n\n
The planned levy increase of 16 cents per liter for gasoline and 15 cents per liter for diesel is scheduled to come into effect on Wednesday.<\/p>\n\n\n\n