The Road Freight Association (RFA) notes the decision by the Minister of Finance to increase the fuel levy by 4% (petrol 16 cents and diesel 15c a litre).
This will be directly felt by consumers, as transporters cannot absorb increases without detrimental effects on their bottom-line (business sustainability). This means that Treasury is “finding” R4 billion towards the R75 billion shortfall from the previous iteration of the budget – however, this underscores that Treasury would rather tax citizens than cut the wasteful expenditure that has brought the country to where it is.
Transport will become more expensive, consumers will pay more, and the old adage that government can keep increasing taxes and levies to fund its uncontrolled spending remains true. Government does not have money – it belongs to the taxpayers, and the time for accountability and responsibility has come. Unfortunately, from June, the cost of logistics – 85% of which runs by road freight – will become more expensive.
The consumer will pay more, transport through South Africa will become more expensive, global supply chains will re-evaluate their routes and you and I will dig deeper into our pockets for goods and services and transport to work whilst the government has “found” a way to fund its salary and wage increases, as well as all the other vanity programmes it constantly runs.
This is not a good decision, neither in the medium nor long term.
About Road Freight Association
The Road Freight Association was established in 1975 to support its Members who are, in the main, road freight operators. It is a lobbying and negotiating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, education, health, the fuel price, law enforcement, labour relations and many other issues related to road freight transport.
Member companies include small and medium-sized trucking companies, including many family-owned businesses, owner operators, as well as most of the largest trucking companies in South Africa. Members come from all sectors of the trucking industry.
Private and public operators are Members of the RFA. Membership also includes a significant number of affiliates and associates – those companies providing goods and services to the trucking industry. Team RFA (made up of support staff and experts) is committed to serving you. The team brings with it a high degree of professional experience, knowledge and dedication – which greatly contributes to the effectiveness, relevance and standing of the RFA.
As the voice of the trucking industry in South Africa, the RFA is your voice. It is important that you avail yourself of that opportunity to be heard.