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Have you ever wondered how you can have an impact on the economy? Try saving fuel while driving....well at least that is a suggestion from one tax commentator.
The point being? If we all work in a consistent direction the small changes do matter. IF we all work in a consistent direction that is.
We all know that by reducing our speed just slightly, we can save significant amounts of fuel. The average petrol-engine car uses 8-8½ litres per 100 kilometres on the open road at a steady 120 kilometres per hour. Since most motorists are probably doing around 140, they will be using around 12-13 litres - about 50% more!
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Assuming that you travel 20 000 kilometres each year, and your car's fuel consumption averages ten litres per 100 kilometres, you are contributing around R2 500 per year in tax. Reduce your fuel consumption by 10%, and that's R250 less in tax.
Big deal, you may say. So let's put this in perspective then - look at the total fuel price. At R7,13 per litre, your annual fuel bill will probably come to around R14 400, or R1 200 per month. Most of us could do with an extra R120 in our pockets each month - especially as in most cases, we pay for our fuel with after-tax money.
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So what does this have to do with us motorists? Well, since prices are generally driven by supply and demand, lower fuel consumption means less demand for imported crude oil, which benefits not only the balance of payments but also the exchange rate (since less dollars will need to be purchased).
Full story on Moneyweb
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Assuming that you travel 20 000 kilometres each year, and your car's fuel consumption averages ten litres per 100 kilometres, you are contributing around R2 500 per year in tax. Reduce your fuel consumption by 10%, and that's R250 less in tax.
Big deal, you may say. So let's put this in perspective then - look at the total fuel price. At R7,13 per litre, your annual fuel bill will probably come to around R14 400, or R1 200 per month. Most of us could do with an extra R120 in our pockets each month - especially as in most cases, we pay for our fuel with after-tax money.
--
So what does this have to do with us motorists? Well, since prices are generally driven by supply and demand, lower fuel consumption means less demand for imported crude oil, which benefits not only the balance of payments but also the exchange rate (since less dollars will need to be purchased).
Full story on Moneyweb
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