The Department of Transport (DOT) will consider proposals from the South African National Taxi Council (Santaco) on e-tolling.
Transport minister Sibusiso Ndebele has called for constructive proposals and solutions to the controversial open road tolling system, which will go live in June.
"Over the past weeks, we have been listening to the various views regarding the tolling of the GFIP [Gauteng Freeway Improvement Project]. There will be further engagement on this matter. However, constructive proposals and solutions are required. There will be no scapegoats.”
He says the taxi industry has shown leadership in the matter and has already come forward with proposals.
“We are engaging with Santaco on their proposals. We therefore invite other individuals and organisations to do the same.”
He says these engagements will culminate in a specific roads funding summit in March to “resolve” the GFIP tolling issue as well as other pertinent issues related to the funding, construction and maintenance of roads in SA.
“We need good roads throughout the country and we have to come up with innovative ways to finance them. Let's look for solutions and not scapegoats,” says Ndebele.
Free pass?
Santaco spokesperson Thabiso Molelekwa says the council is discussing a more sustainable fee with the South African National Roads Agency (Sanral).
Molelekwa says the other pertinent issue is that the Gauteng e-tolling system is a pilot project for nationwide rollout, but Gauteng road-users are of a different socio-economic background to drivers in other provinces and this must be taken into account.
“We have agreed to engage and reach an agreement within a reasonable amount of time, which is before the live implementation of e-tolling.”
Missed consultation
Despite several complaints from opposition, trade unions and the public that there has been no consultation on the e-tolling project, Ndebele says there have been engagements on the matter since the late 1990s.
He says the user-pay principle (e-tolling) to upgrade and expand Gauteng freeways was mooted by the Gauteng provincial government in the late 1990s.
“Since then, there have been numerous engagements and consultations between national government, provincial and local government in Gauteng as well as other stakeholders.”
He says the GFIP was finally approved based on these engagements and with funding from a R20 billion interest-accruing loan.
“While the repayment of this loan cannot be reprioritised, the interests of taxpayers must not be compromised.”
Tax on tax
Democratic Alliance transport spokesperson in the Gauteng Legislature Neil Campbell says the e-toll fees should be exempt from VAT since toll is nothing other than a road tax.
He adds that Ndebele's utterances that road-users must “like it or lump it” is arrogant since the poor will be affected by the tolls the most.
“In addition to the toll, the motorist/commuter is expected to pay 14% VAT on this 'tax'. This is effectively a tax on a tax which even the municipalities realise is unfair.
“If the government really wanted users to only pay for the road upgrades and maintenance, they would play fair and exempt toll fees from VAT.”
Campbell says if the empirical calculation is correct that R300 million will be raised per month by the tolls, the VAT collected will be R42 million per month. “Not bad for a sleeping partner.”
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