The effects of the fuel levy increase on food prices — a major concern of those opposed to the hike — will be mitigated by the diesel refund scheme for key primary sectors such as agriculture, the Treasury says. Government subsidies for public transport will also assist the poor.

The Treasury’s newly appointed deputy director-general for tax and financial sector policy, Chris Axelson, defended the increase in parliament on Friday, upon criticism of it during last week’s public hearings on the fiscal framework by the two finance parliamentary committees...

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