Cut fuel tax to tackle inflation

Jul 22, 2022
22 July 2022 - Stats SA has reported the highest headline inflation rate in a decade, at 7.4%, causing the South African Reserve Bank to increase interest rates dramatically – but this will not be enough to slow price hikes if business remains shackled by the fuel tax.
Cut fuel tax to tackle inflation

Stats SA has reported the highest headline inflation rate in a decade, at 7.4%, causing the South African Reserve Bank to increase interest rates dramatically – but this will not be enough to slow price hikes if business remains shackled by the fuel tax.

According to Stats SA, transport costs have increased 20% in the last year, by far the largest direct contributor to increased headline inflation. Increased transport costs affect all supply chains that involves the movement of goods or people, touching practically every aspect of the economy.

Fuel costs have increased by 43.5% in the last year. Roughly one third of the price at the petrol pump is paid to government bodies. This amounts to an acute tax on the movement of goods and people that disproportionately affects low-income labourers travelling to and from work.

Said IRR Head of Campaign Gabriel Crouse: “The government’s fuel tax is literally slowing everything down, except inflation. Cut the tax, cut the cord, free people to move cheaply. That is the best way to cool inflation.”

* Afrikaans-language media are requested to retain the acronym ‘IRR’, rather than using ‘IRV’.

Media contacts: Gabriel Crouse, IRR Head of Campaigns – 082 510 0360; gabriel@irr.org.za

Mlondi Mdluli, IRR Campaign Manager- 071 148 2971; mlondi@irr.org.za

 

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za

 

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