CAPE TOWN – The Economic Freedom Fighters (EFF) are once again challenging Finance Minister Enoch Godongwana, this time over his recently announced fuel levy hike. The party is heading to the Western Cape High Court on Tuesday, arguing that the increase was implemented through an unconstitutional process.
Last Thursday, the EFF filed court papers aiming to stop the fuel levy adjustment announced during the May presentation of Budget 3.0. The levy will raise petrol prices by 16 cents per litre and diesel by 15 cents. The party claims this move will hit low-income citizens the hardest.
EFF Seeks Court Intervention Over Fuel Levy Implementation
The red berets argue that the finance minister bypassed essential parliamentary processes. According to the EFF, any new tax or levy, such as the fuel levy increase, should have gone through a proper Section 75 money bill process in Parliament. Without this, the party says, the tax is legally flawed.
In their application, the EFF has requested the court to suspend the levy increase with immediate effect. This interim relief is part A of their legal bid, which seeks to halt the implementation before Wednesday, when the new rates are scheduled to take effect.
Part B of the application demands a full judicial review and nullification of the minister’s decision. Additionally, the party is asking the court to order Minister Godongwana to cover all legal costs resulting from the matter.
This isn’t the first time the EFF has taken the finance minister to court. Earlier this year, they successfully challenged a proposed VAT increase from the 12 March budget, with the same court ruling in their favour.
According to the EFF, the fuel levy increase is even more damaging than the VAT hike. They claim the burden will fall squarely on the shoulders of ordinary South Africans, especially the poor. Increased fuel costs lead to a ripple effect, including higher transportation fares and food prices.
The party has emphasized that replacing the VAT increase with a fuel levy is simply shifting the tax burden rather than alleviating it. They believe the move is regressive and unfair, lacking transparency and due process.
With the legal showdown set for Tuesday, all eyes are on the Western Cape High Court to see whether the EFF can once again derail a key government fiscal measure. The outcome could have wide-reaching consequences on how taxes and levies are introduced in future South African budgets.