Western Cape High court dismisses EFF's challenge to fuel levy increase

The Western Cape High Court has dismissed the EFF’s urgent application to interdict the 4% fuel levy increase, set to take effect on Wednesday, June 4. 

The EFF had filed a Notice of Motion, challenging the Minister of Finance Enoch Godongwana’s decision to increase the general fuel levy. 

They sought to have the application heard as an urgent matter, dispensing with the usual requirements for forms and service on Tuesday.

The party through Advocate Mfesane Ka-Siboto had argued that the increase would unfairly burden the working class and poor, worsening inequality and violating constitutional rights.

He said the minister’s decision lacked both rationality and parliamentary oversight.

Ka-Siboto further told the court, in accordance with the Money Bills Amendment Procedure and Related Matters Act, only a law could serve as the proper instrument for the minister to impose a tax.

The EFF claimed that Godongwana overstepped his powers by announcing the fuel levy increase in his Budget speech, without parliamentary approval.

"What is clear is that the minister is imposing tax," Ka-Siboto said, citing the Money Bills Amendment Procedure and Related Matters Act as the legal framework Godongwana should have followed.

The EFF also argued that the fuel levy increase is both economically unjust and unconstitutional, deepening inequality and undermining access to essential goods and services.

"It deepens inequality and undermines access to essential goods and services. We are committed to fighting the fuel levy increase in court and in parliament," the party said.

However, Treasury senior counsel Advocate Adv Kameel Premhid argued that the fuel levy increase is not a tax but rather a regulation change. 

Premhid maintained that the minister has always had the power to adjust fuel levies as part of the budgetary process.

Premhid told the court that the increase is not a tax but a regulation.

"Regulatory charges bring in money, so they might raise revenue. But that doesn’t make it a tax, and just because a tax also raises revenue, the two are not the same thing."

The Western Cape High Court's dismissal of the EFF's bid means the fuel levy increase will go ahead as planned. 

The increase will see diesel prices rise by 15 cents per litre and gasoline by 16 cents per litre. 

The EFF may still pursue its challenge to the fuel levy increase in Part B of its application, which seeks to review and set aside Godongwana's decision.

EFF National chairperson Noluthando Nolutshungu said the fuel levy increase is expected to have significant economic consequences, particularly for low-income households and businesses already struggling with high living costs. 

She warned that the increase would place an "unjust burden" on the working class and the poor, who are already reeling from rising living costs, stagnant wages, and ongoing economic hardship.

The party has vowed to continue challenging the decision in court and in Parliament. 

Despite the setback, the party says it remains committed to fighting for the rights of the poor and working class, who they believe will be disproportionately affected by the hike.

The EFF argues that the increase is unlawful.

Reacting to the dismissal, EFF Treasurer General Omphile Maotwe said the party approached the courts in defence of the poor and working class.

"The party will study the judgment and consider further legal action. Additionally, the EFF plans to introduce amendments to relevant legislation to prevent the National Treasury from imposing taxation without parliamentary approval," Maotwe said.

This was the second time Godongwana has been hauled to court. The EFF, with the help of the Government of National Unity (GNU) aligned DA, had previously successfully challenged the Value-Added Tax (VAT) increase in court.

It was declared invalid and withdrawn, paving the way for Godongwana to deliver a third Budget speech.

mashudu.sadike@inl.co.za