This was announced by Finance Minister, Tito Mboweni, as he delivered his maiden budget speech to parliament in Cape Town earlier today. Mboweni also for the first time in a South African budget, introduced carbon tax, which is a tax aimed at cutting pollution in companies and businesses that emit a high level of carbon dioxide and pollute the atmosphere.

Motorists using petrol will pay carbon tax of 9c per litre, while those using diesel will pay 10c per litre from the 5th of June this year with this new tax. Meanwhile, he also announced that the Road Accident Fund levy would be increased by 5 cents per litre from the 3rd of April later this year. “The Road Accident Fund levy increase is not enough to match the Fund’s R215 billion liability. We urge the Department of Transport to quickly resubmit the Road Accident Benefit Scheme Bill for Parliament’s urgent consideration. It will help stabilise fuel prices,” Mboweni said in his speech.

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