Kamogelo Moichela|Published
Finance Minister Enoch Godongwana faces pressure to deliver household relief when he tables the Medium-Term Budget Policy Statement in Parliament at 2pm on Wednesday.
Political parties argue that stronger-than-expected revenue collection should help ease the cost of living.
South Africans are contending with high fuel prices, rising food and transport costs, utilities and an economy struggling to create jobs.
The strain has been compounded by turmoil in the Middle East, which has disrupted oil supplies.
Parties want the government to consider another reduction in the general fuel levy.
A three-month reprieve would cost the state billions, highlighting the tension between immediate relief and funding government commitments.
Rise Mzansi said fuel-price pressure demands a review of the levies.
It links global volatility to restricted oil supplies amid the United States’ war on Iran and says a forecast tax windfall could give Treasury room to act.
Rise Mzansi spokesperson Mabine Seabe said, “A forecast tax windfall exceeding R50bn offers short-term breathing room, but it won’t solve the structural problems”.
The Good Party has also called for a review, arguing that the general fuel levy operates as a broad tax rather than being earmarked for a purpose.
“All South Africans, not only those who drive their own cars, are directly impacted by fuel prices, be it through paying more for food and consumer goods or public transport,” secretary-general Brett Herron said.
However, the Democratic Alliance (DA) proposed another route to relief, saying the Road Accident Fund’s funding model should change.
The party said reform could reduce the pump price by more than R2 a litre, although it would require changes to the funding.
Herron also urged Godongwana to address income support.
The R370 Social Relief of Distress grant is due to end in March, and the Good Party wanted a basic income grant to replace it.
He argued that delays were untenable while many households remained below the poverty line.
Godongwana’s statement will be watched for immediate fuel relief, longer-term tax or funding changes, and a decision on income support.
kamogelo.moichela@iol.co.za
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