Government considers cutting or scrapping RAF fuel levy
A new funding model is considered - but Outa says this is not the solution.
The Road Accident Fund (RAF) fuel levy could be reduced or scrapped as part of a new funding model being considered for the financially-distressed fund, according to Deputy Minister of Transport Mkhuleko Hlengwa. The Deputy Minister said a hybrid model, which reduces the levy but does not eliminate it completely, is being considered to alleviate pressure on revenue streams.
The government is exploring alternative sources of funding, such as third-party insurance for vehicles and requiring foreigners visiting South Africa to have travel insurance. Cost of fuel is one of the key considerations in the government's medium-term development plan, and the RAF levy at the pump is not a sustainable source of funding for the RAF, particularly with the increase in electric vehicles.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
