OUTA criticises the government fuel relief plan: “Residents pay twice”

The Organisation Undoing Tax Abuse (OUTA) is dissatisfied with the welcomed R10 billion fuel levy relief by Finance Minister Enoch Godongwana. The organisation criticises the relief, believing that South Africans continue to pay for government waste, failing infrastructure, and poor financial management.

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Temporary respite

According to IOL, OUTA questions the extent of the respite in the Medium-Term Budget Policy Statement (MTPS) shared on Wednesday. They acknowledge the MTBPS’s impact on households battling higher transport and food costs.

They also questioned whether this additional spending will translate into better services. Wayne Duvenage, the OUTA CEO, describes this relief as temporary, stating:

“South Africans are feeling the pressure every time they fill their tanks, buy groceries or pay for transport. This relief will help, but only temporarily,” he said.

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“Residents pay twice”

The organisation questioned the current state of affairs of the economy, asking whether taxpayers are receiving value for the money the government already collects. Referring to the review of R887 billion transferred to provinces and municipalities through infrastructure conditional grants between 2017/18 and 2023/24 conducted by the Treasury.

OUTA reports that the review found that projects were frequently delayed, incomplete, or failed to deliver their intended benefits. Further calling for accountability.

“Spending the money is not the same as doing the job. Treasury must tell South Africans which projects failed, how much was spent, who was responsible, and what action has been taken,” Duvenage said.

The main reason for OUTA’s dissatisfaction lies in the government’s failure to follow through and maintain.

Even with the MTBPS provision of an additional R21.8 billion to the local government equitable share over the medium term to help cover rising costs of basic municipal services, dissatisfaction still arises.

The organisation expressed that the government spends too much on operating costs and far too little on maintaining infrastructure, which then poses further costs for residents.

“When municipalities collect money for electricity and water but fail to maintain those networks, residents pay twice. First through their municipal bills and then through the cost and disruption of failing infrastructure,” the OUTA CEO highlights.

Featured image: Pexels/Engine Akyurt

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