The Congress of South African Trade Unions (COSATU) deplores the pending inflationary increase in the fuel tax from Wednesday 04 June.  Whilst we appreciate that this is the first increase in the fuel tax in three years, we had hoped that government would instead find alternative sources of revenue and extend this relief for millions of highly indebted workers, struggling commuters and a tepid economy. 

We note that with the overall decrease in the fuel price, the full effect of the fuel tax will not be immediately felt, it will nonetheless have a dampening impact on the economy that we can ill afford and deny badly needed relief to commuters.

It is critical that government honour its 2018 and 2022 commitments for a comprehensive review of the various fuel taxes and levies which consume approximately a third of the fuel price.  A reduction will provide badly needed stimulus to stagnant economic growth.

It is equally important that Eskom be assisted to reduce the currently increasingly unaffordable price of electricity.  Similarly, Transnet and Metro Rail must be assisted to return to full capacity to shield food and commuters from inflation.  The South African Reserve Bank too must be bolder and slash the suffocatingly high repo rate level.

COSATU will continue to engage the Department of Transport on its efforts to cleanse the chaos that is the Road Accident Fund, to deal with its current financial model and R400 billion in unaffordable liabilities, and table the long delayed RAF and Road Accident Benefits Scheme Bills at Parliament to ensure it is placed on a sustainable path and ends its dependency on fuel levy hikes.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Cell: 082 785 0687

Email: matthew@cosatu.org.za