The Western Cape provincial government plans on introducing a provincial fuel levy, but it is unlikely to happen any time soon. The additional funds generated by the proposed fuel levy will be used to build and maintain the province’s roads.
Western Cape’s Ministry of Finance spokesperson, Daniel Johnson, says the decision to implement a provincial fuel levy was taken early last year by the Western Cape Cabinet. Before any consultation happens, the fuel levy research conducted in 2005 needs to be updated.
The research will take eight to nine months to conduct, and this will influence the provincial Cabinet’s decision on whether to proceed or not.
Additional funds generated by the provincial fuel levies will go into the Provincial Revenue Fund, and will be allocated as prescribed by current legislative and fiscal frameworks.
If they proceed, the plan will take between five and six years to finalise and implement successfully.
The provincial fuel levy will be a levy separate from the one imposed on national level, and will require motorists in the Western Cape to adhere to both.
Provincial government had previously proposed instating a provincial fuel levy in 2005, which would have been between 10c and 50c. Although the plan was approved by then-finance minister Trevor Manuel, it was never implemented.
According to Western Cape MEC for Finance, Ivan Meyer, the provincial treasury has already approved consultants to conduct the study on the viability of the implementation of the fuel levy. The study will take into account the the current economic situation in the country, and also the very important question of whether motorists can afford it.
The impact of the instatement of the provincial fuel levy will also have to take the economies of neighbouring provinces into consideration.
Meyer maintains that nothing is final as yet, and that the possibility of implementation is only being investigated.