The economic consequences of a fuel levy reform in South Africa
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | The economic consequences of a fuel levy reform in South Africa | |
| Creator | Mabugu, Ramos Chitiga, Margaret Amusa, Hammed | |
| Description | This paper assesses the economic effects of a hypothetical fuel levy imposed by South African provinces. The welfare effects of increasing the fuel levy by 10 per cent are negative but very small. Similarly, the marginal excess burdens for efficiency and equity (poverty) are quite low, suggesting much smaller impacts of the intervention on both economic activity and equity. Furthermore, a fiscal policy reform that raises fuel levy by 10 per cent is progressive as it has stronger negative effects on higher income households than the lower income households. A potential source of instability for the macroeconomy and total government revenue is the negative effect on economic activity induced by the fuel levy increase. The remedies suggested are that policymakers should make tax room elsewhere in the intergovernmental fiscal system to accommodate the fuel levy increase. | |
| Publisher | AOSIS Publishing | |
| Date | 2011-06-17 | |
| Identifier | 10.4102/sajems.v12i3.219 | |
| Source | South African Journal of Economic and Management Sciences; Vol 12, No 3 (2009); 280-296 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/219/71
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