The recent Western Cape high court ruling dismissing the Economic Freedom Fighters (EFF) urgent application to halt the government’s implementation of a fuel levy increase has sparked controversy. The EFF sought to block an increase of 16 cents a litre for petrol and 15 cents for diesel in the general fuel levy, arguing that it was unlawful as it was not introduced through a Money Bill as required by the Constitution.
The party condemned the court’s ruling, stating that it sets a dangerous precedent for taxation without parliamentary oversight. They accused Finance Minister Enoch Godongwana of sidestepping democratic procedures in the management of public finances, describing it as a betrayal of the poor and working class.
Godongwana, on the other hand, defended his actions, stating that the levy increase was necessary to preserve the real value of the levy in the face of inflation and declining revenue. He warned that halting the increase would result in a shortfall for the fiscus, necessitating further borrowing, spending cuts, or alternative tax increases.
Despite the court ruling allowing the increase to proceed, the EFF has vowed to continue fighting for democratic control over taxation. They are considering further legal avenues and a legislative push in parliament to close loopholes that allow the treasury to act unilaterally.
While the EFF’s application was dismissed, legal experts believe that the constitutional questions raised have not been definitively ruled on, leaving room for further challenge. The broader question of public accountability in tax decisions remains unresolved, with debates on the constitutionality of executive powers granted by statutes like the Customs and Excise Act.
The EFF has pledged to use all platforms, legal and political, to hold the treasury accountable and ensure that the people have a voice in every cent taken from their pockets. The fight for transparency and democratic oversight in taxation decisions continues, with the EFF leading the charge for the rights of the South African people.