The Road Accident Fund (RAF) revenue of R90 billion per annum is not enough to get the RAF back to a solvent status. Drastic steps are required, and the latest amendment bill will go a long way to rectifying the shortcomings.
The main income received by the RAF is a levy that is based on fuel sales known as the Fuel Levy. The RAF Fuel Levy income is a charge levied on fuel throughout the country. The quantum of the RAF Fuel Levy per litre is determined by the National Treasury which levy accounts for about 6% of total tax revenue and brings in more money than customs duties or alcohol and tobacco excise duties combined.
All our state-owned entities are in trouble, but the RAF is high on the list, absorbing and wasting petrol levy collections. The RAF is
