Minister of Transport Barbara Creecy has revealed that the Department of Transport, together with the Road Accident Fund (RAF), has begun a formal review
Image: Supplied / Department of Transport
The Public Servants Association (PSA) has rejected reports that the government could introduce a new vehicle tax or licence-related levy to help fund the struggling Road Accident Fund (RAF).
The union's comments follow confirmation by Transport Minister Barbara Creecy that the Department of Transport is reviewing the RAF's funding model.
The review comes as the fund continues to face financial and administrative challenges, while the government considers alternative ways to secure its long-term funding, as electric vehicle adoption is expected to reduce fuel levy revenue over time.
"The Department of Transport, in collaboration with the Road Accident Fund (RAF), has initiated a structured review of the RAF funding framework, guided by a formal business case. Once this process is completed, it will be communicated publicly," Creecy said.
The union said any additional tax or compulsory levy would place an unfair financial burden on South Africans, particularly public servants who rely on private vehicles to travel to and from work.
"At a time when South Africans, and public servants in particular, are grappling with rising living costs, increasing fuel prices, electricity tariff hikes and stagnant wages, any additional tax burden will be insensitive and unjustifiable. The introduction of another compulsory tax will place an additional financial burden on public servants," the union said.
The union added that the RAF's financial difficulties stem from years of poor governance, inadequate oversight, financial mismanagement and policy failures.
"RAF cannot expect citizens to carry the financial consequences of its inability to manage public funds effectively. Citizens should not be punished for RAF's failure to uphold the principles of good governance, accountability, and responsible financial management, the union said.
"Before introducing any additional taxes, RAF must first demonstrate that every effort has been made to eliminate wasteful expenditure, improve governance, and ensure that it operates efficiently and transparently."
The union called on the "government to abandon any proposal that would impose an additional vehicle tax on South Africans."
"Instead, government should prioritise strengthening governance at the RAF, rooting out inefficiency and corruption, improving financial controls, and ensuring that those responsible for mismanagement are held accountable."
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