The Economic Freedom Fighters’ (EFF) legal challenge to the proposed increase in South Africa’s general fuel levy has reignited a critical national discourse on the constitutional, procedural, and economic foundations of fiscal policymaking.
The EFF’s challenge contests Finance Minister Enoch Godongwana’s announcement of increases of 16-cent per litre in the petrol levy and 15-cent per litre in the diesel levy which was introduced during the third attempt to table the 2025/26 national budget. The Minister justified the increases as a necessary revenue measure following the withdrawal of the proposed VAT hike, which faced significant political opposition from coalition partners and public backlash.
From Treasury’s perspective, the fuel levy is already an existing and longstanding fiscal instrument and was more predictable tool to address the estimated R15 million revenue shortfall. However, critics argued that the levy was introduced without appropriate parliamentary procedures and that it disproportionately burdens low-income households.
The levy adjustments took effect on 4 June 2025, weeks before Parliament’s formal vote on the budget on 31 July. This raised questions of legality and timing, with the EFF arguing that the move violates Section 77 of the Constitution, which requires that any national tax, levy, or duty be introduced via a Money Bill to ensure parliamentary oversight.
Constitutional Dispute and Procedural Concerns
At the heart of the EFF’s legal argument is the claim that implementing tax measures without following Section 77 procedures undermines constitutional governance. The EFF contended that bypassing the Money Bill process not only eroded parliamentary sovereignty but rendered the budget process constitutionally defective.
The Treasury countered that fuel levy adjustments are routine, historically implemented through annual legislation, and fall within the Finance Minister’s statutory authority. However, the procedural sequencing implementing the levy before parliamentary approval remained contentious.
The legal challenge thus spotlighted broader themes of executive overreach, legislative accountability, and fiscal transparency under coalition governance.
Court Ruling: 03 June 2025
On 3 June 2025, the Western Cape High Court dismissed the EFF’s urgent application to interdict implementation of the fuel levy. It is important to note that the court did not engage with the broader constitutional challenge itself, which the EFF had previously framed in its initial filing as a possible Part B of its legal strategy.
Political and Economic Implications
While the urgency of EFF’s case was dismissed, it brought critical legal and political questions to the surface, especially concerning fiscal policymaking under a coalition government and the limits of executive discretion.
Notably, the issue around the budget, highlighted the fragile nature of fiscal consensus in South Africa’s 7th Parliament. The rejection of the VAT hike revealed deeper tensions within the GNU and the complex trade-offs required to govern without a majority.
Economically, the EFF’s concerns about the regressive nature of the fuel levy remain valid. As an indirect tax, it affects low-income households the most, raising the cost of transport, food, and other essentials during a period of high inflation and stagnant growth. Although for now the impact of the levy hike will be softened by the marginal decrease in fuel prices.
A Challenge That Still Matters
Though the court did not grant relief, the EFF’s challenge underscores the need for clarity around the timing of tax implementation and the necessity of maintaining institutional accountability.
Whether or not the legal argument ultimately succeeds, political and normative issues persist, such as should routine taxes escape renewed scrutiny as their impacts evolve? How do we safeguard transparency and public trust in times of fiscal stress?
The EFF’s legal battle taken to its conclusion will ignite broader debates about equitable governance, constitutional fidelity, and the future of South Africa’s public finance system.
