We know, it’s scarcely-fathomable that any sort of benefit whatsoever that can be associated with our current fuel price nightmare. However, a set of economic experts believe they have identified one positive, amongst a myriad of negatives.
Mental gymnastics, anyone? Economic experts identify ‘one positive’ to rising fuel price
Now don’t get it twisted, this positive in question does not come anywhere near to outweighing the negatives. But Price Waterhouse Cooper analysts believe that there is a ray of sunshine poking through the darkest of all clouds – and it’s to do with ‘tax relief’.
The four-month period where state intervention cushions the blow of every increase is set to collectively save the South African taxpayer up to R14 billion. The money shaved-off our fuel prices, combined with no annual change to current levies, will take about 1% off our total tax demands.
“On a positive note, the April-July fuel price reprieve, combined with no annual change to the General Fuel Levy and Road Accident Fund levy for the current fiscal year, will provide up to R14bn in tax relief to South Africans in the 2022/23. That is nearly 1% of our total tax revenue.”Price Waterhouse Cooper
Tax benefits ‘cannot compete’ against soaring cost-of-living
It’s one of those things that sounds more impressive on paper than it is in reality, though. Getting a few tax savings is great, and we’re not turning our nose up at the concept – but very few motorists will notice these benefits, given that the fuel price is rapidly approaching R30-per-litre.
In April, May, and June, R1.50-per-litre was knocked off the value of our fuel. This reduction on the General Fuel Levy drops to 75 cents-per-litre in July, before being phased out completely in August. We may have got one over on the taxman this year, but it sure as hell doesn’t feel that way.
Another increase to the fuel price is expected next week, with increments of R2.60-per-litre for petrol and R2.40-per-litre for diesel expected. This means that some road users would have to pay around R27-per-litre to fill up their tanks in July.