Tax makes up between 34% and 36% of the fuel price in South Africa

[Thor]

Make the price R5 a liter and the economy will absolutely explode positive

 

[mypetcow]

UK, World class public transport, a sh*tload of inner city people simply cycle to work because it isn't that far and there is an abundance of cycle lanes. Not everyone owns a car because it isn't necessary for them to own one.
South Africa is a polar opposite of the UK as far as this goes.
It is a 25km round trip to get my son to school We live and the school is in the same town. so 50km a day just to get him to school and back. In the UK that distance is considered crossing half the country.

Didn’t know we were moving the goal posts. I thought we were talking about the fuel duty here and not whether you should move closer to your son’s school so that you can take him there by bicycle or on foot or if London is putting in more cycle lanes or Tube stops

 

[krycor]

Road infrastructure in the UK is a lot more mature then here too. I guess that means the UK is overcharging or we are under charging given the larger deficits needed to overcome.

Ironic twist as per usual..

But really RAF, idiotic drivers who don’t obey rule of law part of the issue. Yes fraud and corruption too.

We can offset this with compulsory insurance to offload the RAF costs to private sector but know that insurance as a whole will become more expensive I reckon (if they covering the same) besides I don’t know if they willing to do it. This is beside the policing, auditing needed to ensure each vehicle has insurance and notice I haven’t even mentioned road network maintenance and inflation resulting from increased direct costs flat rated per vehicle (likely more for public transit).

 

[mypetcow]

Road infrastructure in the UK is a lot more mature then here too. I guess that means the UK is overcharging or we are under charging given the larger deficits needed to overcome.

Ironic twist as per usual..

But really RAF, idiotic drivers who don’t obey rule of law part of the issue. Yes fraud and corruption too.

We can offset this with compulsory insurance to offload the RAF costs to private sector but know that insurance as a whole will become more expensive I reckon (if they covering the same) besides I don’t know if they willing to do it. This is beside the policing, auditing needed to ensure each vehicle has insurance and notice I haven’t even mentioned road network maintenance and inflation resulting from increased direct costs flat rated per vehicle (likely more for public transit).

This is probably one of the best ideas nobody is talking about. Fund the RAF not via the fuel levy but rather via a mandatory 3rd party insurance like pretty much anywhere in the world. That way you don’t get your license disc if you don’t show proof of 3rd party insurance (taxis included). I like it.

Plus you wouldn’t be forcing anyone to get full comprehensive insurance which would be a huge burden and the added benefit is that you wouldn’t need to involve the courts if someone who is uninsured bumps your car or worse.

 

[system32]

In the current financial year, the following taxes apply per litre of 95 unleaded petrol:

• General Fuel Levy – R3.93
• Road Accident Fund Levy – R2.18
• Customs and excise tax – R0.04
• Demand-side management levy – R0.10
• Other levies – R0.01

At least fuel is zero rated in terms of VAT.



RAF R44.6b/year.
Q. Why is RAF in ZA so expensive?


2020 JANUARY TO DECEMBER SA FUEL SALES VOLUME / CONSUMPTION VOLUME IN LITRES See:

http://www.energy.gov.za/files/media/SA%20FUEL%20SALES%20VOLUME/2020-National-Aggregated-FSV-data-Quarter4.xls

 

[Johnatan56]

So let me get this straight:

SA: Petrol price: R18.34, fuel levy R6.11/litre (33%tax)

UK: Petrol price: £1.35 (R26.49), fuel levy 57.95p/litre (R11.40/litre) (43% tax)

Big yawn. SA once again charges less tax than the UK yet this is somehow a huge money grab in SA…remember to get your pitchforks

Or does the UK somehow get more refined petrol to justify the higher tax? This finger pointing at political parties is ridiculous.

Tax on shopping and services

VAT and other taxes on shopping and services, including tax-free shopping, energy-saving equipment and mobility aids.

www.gov.uk

Issues:
- UK road infrastructure is better maintained
- UK also has worse weather for most of the year compared to most of South Africa, you can get away with not renewing roads and stuff for a lot of South Africa for ~20-30 years before issues truly start cropping up (as can be seen everywhere now, that's why such an issue the last ~10 years for even not that heavily traveled roads).
- Tolling, based on: https://www.brandsouthafrica.com/in...nfrastructure/south-africas-transport-network, 19% of South African roads are toll roads.
- The fuel levy is also used to subsidize public transit, owning a car in a lot of places in the UK is a privilege and not a must, for most of South Africa you have to have a car

I think US or any of our southern neighbors are probably better examples to look at, including that the US is failing to maintain a lot of infrastructure and has the suburban sprawl problem pretty much everywhere.

At least fuel is zero rated in terms of VAT.

Q. Why is RAF in ZA so expensive?

OPINIONISTA: Greed and maladministration collide: How the Road Accident Fund was bled dry

The Road Accident Fund ran at a deficit of R5-billion in the previous financial year, which in the long term is not only unsustainable but also threatens the future viability of the entity. Years of predatory legal action and internal administrative issues have converged to create an almost...

www.dailymaverick.co.za

 

[SlimJakhals]

How doe electric car owners contribute to the RAF?

 

[Jet-Fighter7700]

How doe electric car owners contribute to the RAF?

they are still quite rare in SA, so at the moment they don't, or maybe they do a small amount with Eskom VAT.
when they do take off, oh boy, the ANC will party like its 1999,

they probably will force all EV's to fit a GPS unit to them to charge you per KM driven, to feed their Incompetence/stupidity and wastefulness.
or they will tax the superchanger units, those cards you use to fill up at a changing station, will be heavily taxed.

the ANC is good at one thing, finding new and innovative ways to tax people knowing fully, they can do what they like and get away with it.

 

[Johnatan56]

How doe electric car owners contribute to the RAF?

Yes Mr one post wonder, all ~400 of them, https://www.techfinancials.co.za/20...ctric-cars-were-sold-in-south-africa-in-2020/

they are still quite rare in SA, so at the moment they don't, or maybe they do a small amount with Eskom VAT.
when they do take off, oh boy, the ANC will party like its 1999,

they probably will force all EV's to fit a GPS unit to them to charge you per KM driven, to feed their Incompetence/stupidity and wastefulness.
or they will tax the superchanger units, those cards you use to fill up at a changing station, will be heavily taxed.

the ANC is good at one thing, finding new and innovative ways to tax people knowing fully, they can do what they like and get away with it.

Or just a flat fee that's paid monthly/yearly, same as your normal license disk...