EFF returns to WC High Court to challenge Godongwana's fuel levy hike

CAPE TOWN - The Economic Freedom Fighters (EFF) head back to the Western Cape High Court on Tuesday to challenge Finance Minister Enoch Godongwana on the fuel levy increase.

On Thursday last week, the EFF filed papers to block a fuel levy increase announced during Godongwana's tabling of budget 3.0 in May.

The party said it would argue that Minister Godongwana was wrong in the process he followed to introduce the levy increase, which will see petrol and diesel increasing by 16 cents and 15 cents per litre, respectively.

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The EFF will return to the same court which ruled in its favour when it overturned the party's challenge of the proposed value-added tax (VAT) increase from the 12 March budget and fiscal framework.

The party is now fighting the fuel levy increase, which is said was even more regressive than the VAT increase.

In the first part of its application, the EFF wants the court to suspend the decision to increase the levy, which comes into effect on Wednesday, pending part B of its application.

In part B, the EFF wants the minister’s decision set aside and also pay the party’s costs.

The party will tell the court that Godongwana must introduce a money bill which imposes a tax or a levy, which will trigger a section 75 parliamentary process before the money bill can take legal effect.

The party said that the levy increase merely replaced the VAT increase and it would affect the poor the most, from higher transport costs to increases in the price of basic food items.