E-tolling will increase the odds of an economic fallout in SA, especially in light of the ongoing crisis in Europe.
Finance union Sasbo, formerly the South African Society of Bank Officials, warns that e-tolling could lead to an economic crisis. It cautions against the multiplying effect of the Gauteng tolling system on inflation, job losses and the broader economy.
“The increase in logistics costs will reduce our economy's competitiveness, as most goods are transported by road through Gauteng,” says general secretary Shaun Oelschig.
“[For] most businesses - whether big or small - operational costs will increase and there is no doubt that the added costs of services or transporting goods, such as foods, will be passed on to the consumer. The effects will be felt by all and even more so by the poor, as basic foodstuff prices will also increase as a result.”
He adds that it will be too heavy a burden for the regular road user. Electricity hikes, higher rates and taxes and increased fuel prices have already massively eroded consumers' disposable income, and the additional burden will affect their already strained ability to service debt.
“On top of everything, the cost of maintaining the toll system, distributing the tags, the policing of the system and the reconciling of charges will also be passed on to the consumer,” says Oelschig.
The 70 000-strong union says it will join consumers, workers, lobby groups and unions to oppose the e-toll system.
Ignoring opposition
Fees initially gazetted for the e-toll system in February were suspended due to public pressure.
Cabinet in August approved reduced tariffs for e-tolling in Gauteng, which dictate that motorcycles (Class A1) with e-tags will pay 24c/km; light vehicles (Class A2) will pay 40c/km; medium vehicles (Class B) 100c/km; and “longer” vehicles (Class C) 200c/km.
Qualifying commuter taxis (Class A2) and commuter buses (Class B) are completely exempt from the e-toll system.
The reduction for light vehicles without e-tags saw a drop from 66c/km to 58c/km, and from R3.95/km for heavy vehicles without e-tags to R2.95/km.
The system is set to go live in February, despite strong opposition from labour, political parties and citizens.
Share
