Finance Minister Nhlanhla Nene today announced an increase of 50 cents per litre in the Road Accident Fund (RAF) levy, setting the price at 154 cents in the 2015/16 tax year.

Nene said the increase is required to “finance the progress made by the RAF [Road Accident Fund] administration in clearing the claims backlog”.

“But it also reflects the unsustainability of the current compensation system, which has accumulated a R98 billion unfunded liability.

“Legislation to establish the new Road Accident Benefit Scheme will be tabled this year, to provide for affordable and equitable support for those injured in road accidents. Once the legislation has been passed, the levy will be assigned to the new scheme,” Nene said.

The general fuel levy was increased by 30.5 cents per litre and will take effect in April.

 

Source: Moneyweb.co.za