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The Economic Freedom Fighters and Finance Minister Enoch Godongwana have once again clashed in the Western Cape High Court over the controversial fuel levy increase announced earlier this year.
A full bench of the court has now reserved judgment in the matter, meaning the parties will have to wait longer for a final ruling that could reshape the finance minister’s powers regarding fuel levies.
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EFF Challenges Fuel Levy Increase In Western Cape High Court
The EFF argued on Wednesday that sections of the Customs and Excise Act unlawfully allow the finance minister to amend or increase the fuel levy without parliamentary approval.
The party has continued its legal challenge after its earlier urgent application to block the levy increase was unsuccessful. The EFF maintains that changes affecting taxes and levies should be processed through Parliament as money bills.
Advocate Mfesana Ka-Siboto, representing the EFF, argued that the fuel levy increase announced in the February budget was intended to compensate for the failure to increase Value Added Tax (VAT) last year.
“A bill is a money bill if it abolishes, reduces, or grants exemptions from any national taxes, levies, duties, or surcharges, which is the whole construct of this notice by the minister,” Ka-Siboto told the court.
Godongwana Defends Powers To Amend Fuel Levy
Representing Godongwana, advocate Kameel Premhid argued that the fuel levy should not be classified as a tax requiring parliamentary approval.
“The minister is not inventing a new tax; he’s simply exercising his power to change the levy, which he’s entitled to do,” Premhid said.
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He further argued that requiring Parliament to approve every fuel levy adjustment could significantly delay the process, potentially taking months or even longer before implementation.
Court Ruling Could Impact Future Fuel Levy Decisions
The outcome of the case is expected to have broader implications for how future fuel levy increases are handled in South Africa. A ruling in favour of the EFF could limit the finance minister’s unilateral powers and require parliamentary oversight for similar decisions.
The dispute comes amid ongoing public concern over rising fuel prices and the increasing financial pressure on motorists and businesses.
The court has not yet indicated when judgment will be delivered.
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