Creecy Seeks New Tax on Cars

Statement by Dr Chris Hunsinger MP – DA Spokesperson on Transport:

The Democratic Alliance (DA) is ramping up our fight against plans being considered by Transport Minister Barbara Creecy to make motorists pay even more to prop up the failing Road Accident Fund (RAF).

At a time when South Africans are battling rising fuel prices, food inflation and increasing financial pressure, government is considering a new charge linked to vehicle licence renewals. Instead of fixing the RAF’s long-standing failures, the ANC is once again asking hardworking South Africans to pay more.

The DA is already engaging Transport Minister Barbara Creecy with plans to replace the RAF, through legislative amendment. We are keenly awaiting her confirmation of a meeting.

The RAF is not in crisis because motorists are not paying enough. The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled. South Africans should not be forced to foot the bill for government’s failures.

The DA has consistently argued that the RAF has become an unsustainable burden on taxpayers and motorists. Every litre of fuel purchased already includes a levy that funds the RAF.

The Minister has reportedly confirmed that an additional fee attached to annual licence-disc renewals is one of the options being considered as government searches for alternative funding mechanisms for the RAF. While the Minister says this remains under consideration, the fact that such proposals are being discussed should concern every motorist in South Africa.

The DA believes the solution is not to create new taxes, fees and levies. The solution is to fundamentally reform and ultimately replace the RAF with a sustainable, efficient and affordable system that delivers support to accident victims without continuously demanding more money from the public.

Every rand extracted from motorists through new taxes and fees is a rand that cannot be spent on groceries, school fees, transport or supporting a family. South Africans should not be punished for government’s inability to manage the RAF.

The DA will continue fighting any attempt to make motorists pay more to rescue a broken system.