A new tax revolt led by the middle class is afoot. Last time it was e-tolls, this time it is the fuel levy. The DA and tax lobby group Outa want R1 lopped off the fuel levy to ease the burden of the rising oil price on the public. This levy now stands at R3.37 a litre and the Road Accident Fund (RAF) levy (the old third party insurance payment), also linked to petrol sales, is at R1.93. This means that 38% of the price of petrol is taxes. Because the basic fuel price has reached record levels, with 93 octane petrol at R15.80, the fuel levy is an easy target for opposition political parties. It goes without saying that everyone, other than the super-rich, are feeling the pain, with the biggest burden on the poorest section of the population. The economy is also feeling the pain, with inflation ticking up.
The grounds for a tax revolt are legitimate. Fifteen years ago 78% of personal income tax was paid by 32% of taxpayers. Now 80% of all personal income tax is paid by 25.7% of ...
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