Wednesday, May 20, 2009

Mboweni calls for electricity tax

By Mandisi Tyulu
20 May 2009

The Reserve Bank Governor Tito Mboweni has proposed a "once-off tax" rather than a tariff hike to help Eskom build capacity.

Mboweni told a conference of the Road Freight Association in Vanderbijlpark that he was sure people would prefer a tax to tariff increases, as long as was once-off.

It is reported that while Mboweni said he agreed more power capacity was needed, he added a tariff hike would not benefit the industry.

Eskom has proposed to increase its tariffs by 34-percent this year. The utility said the increase was necessary to build capacity to satisfy South Africa's electricity demands.

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