The Economic Freedom Fighters (EFF) have launched an urgent court application to block the impending fuel levy increase, set to take effect on 4 June 2025. The hike, announced by Finance Minister Enoch Godongwana in his 2025 Budget Speech, would raise the levy by 16 cents per litre in an effort to address South Africa’s revenue shortfall following the withdrawal of a proposed 0.5% VAT increase.
Legal Challenge: Minister Accused of Overreach
In papers filed at the Western Cape High Court, the EFF argues that Godongwana acted unlawfully by attempting to implement the tax hike without following proper parliamentary procedures. EFF Treasurer-General Omphile Maotwe stated that the minister lacks the authority to unilaterally introduce a national tax through a government gazette.
“The Constitution, under Section 77, is clear: any national tax must follow the Money Bills Amendment Procedure Act,” Maotwe said. “The minister is acting unconstitutionally by bypassing Parliament.”
The EFF had previously written to Godongwana, Speaker of Parliament, and the Chairperson of the Standing Committee on Finance, demanding the withdrawal of the levy increase. With no response received within the stipulated 48-hour deadline, the party proceeded with legal action.
Concerns Over Impact on the Poor
Maotwe warned that the levy would disproportionately burden low-income households, exacerbating South Africa’s cost-of-living crisis.
“This is a regressive tax—whether you are rich or poor, you pay the same,” she said. “Transport costs will rise, food prices will increase, and millions of grant recipients will suffer. The poor cannot absorb this.”
The EFF likened the move to Godongwana’s failed attempt to hike VAT in 2025, which was overturned by the courts. Maotwe expressed confidence in a favorable ruling, citing precedent.
Government’s Silence Raises Suspicion
The EFF suspects the minister plans to gazette the levy on 3 June, leaving little room for legal intervention. “This is a deliberate maneuver to avoid scrutiny,” Maotwe alleged.
With the court yet to rule, South Africans await a decision that could determine whether the levy proceeds—or if the government must seek alternative revenue solutions.
