South Africa cuts fuel taxes as OUTA criticises public spending
By the AFREEQUE newsroom, based on IOL
The temporary fuel tax cut is expected to reduce the price of petrol by 1.50 rand a litre and diesel by 3 rand from 4 November, according to Minister Enoch Godongwana. South African organisation OUTA welcomes the relief while condemning the mismanagement of 887 billion rand in infrastructure grants.
The Organisation Undoing Tax Abuse (OUTA) welcomed the 10 billion rand package announced by South African Finance Minister Enoch Godongwana to temporarily ease fuel taxes, while criticising the lack of results from public spending. The organisation says households and businesses continue to be penalised by waste, deteriorating infrastructure and poor financial management, according to IOL.
The planned cut is 1.50 rand per litre of petrol and 3 rand per litre of diesel from 4 November to 1 December, followed by a smaller reduction until 5 January 2027. OUTA chief executive Wayne Duvenage considers the measure useful in the face of rising transport and food costs, but too limited to address structural difficulties.
OUTA cites a Treasury review of 887 billion rand in infrastructure grants paid to provinces and municipalities between 2017-18 and 2023-24. The organisation says several projects were delayed or abandoned, or failed to deliver the expected services. It is asking the Treasury to identify underperforming projects, the amounts committed and those responsible. The budget also provides an additional 21.8 billion rand for local authorities over the budget period, but OUTA criticises them for devoting too many resources to day-to-day spending at the expense of infrastructure maintenance. This criticism adds to information already published on the fuel tax cuts until January 2027.
