The proposed scrapping of e-tolls has been in the news for some time. According to Jacob Mamabolo, the Gauteng MEC for finance, the Provincial Government currently requires funding to address the debt for the failed e-toll system. It was still negotiating with National Treasury for funding, but completing the regulatory aspects of e-tolls would require much work.1
Gauteng’s stand on e-tolls
The MEC said that the Provincial Government considers the e-toll matter finalised, thus easing any fears that the saga would continue. 1
Minister of Finance’s point of view
In his mid-term budget policy statement (MTBPS), Enoch Godongwana emphasised that the e-toll situation is over. National Government and the Gauteng Provincial Government would share the e-toll debt. Arrangements including a Memorandum of Agreement (MoA) are underway with National Government. 1
Feedback on the e-toll system
National Government will inform the public after finalising the MoA. Again, the Minister of Finance reassured the public that the MoA arrangement and any outstanding issues should not cause any concern. 1
Gauteng does not meet e-toll deadline
Sometime after 26 October 2022, Gauteng Premier Panyaza Lesufi said that e-tolls would end by 31 December 2022 after Gauteng had concluded the MoA with National Treasury. Unfortunately, this date came and went with no results. The Provincial Government responded, saying that the official termination of the system would occur sometime during 2023 without providing any dates. 1
Where are the e-tolls heading?
Even though politicians declare the system to be ‘dead’, the laws governing it are still much alive, including billing and collection of fees. 1
Unresolved issues
Questions concerning the Provincial debt and how to settle it still need to be answered. Refunding motorists who have paid for e-tolls would cost R6.9 billion – something National Treasury had not provided for in the latest budget.1
The e-toll debt is massive
According to the Minister of Finance, National Treasury will honour 70% of the total debt of R43 billion, while the Gauteng Provincial Government will meet the remaining 30% or about R12 billion. The MEC wants Gauteng to settle this debt over 20 years, but this still needs to be finalised. 1
What funding will settle the debt?
To meet this debt, some sources of income under consideration by Gauteng include increasing licence fees, tolling vehicles manually in Gauteng, and raising the fuel price by 3 cents/litre. The MEC indicated that he would consult with the public after making a final decision. 1
Disclaimer
The point of this article is to inform the public about the latest developments on the termination of the e-toll system. 1
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Source:
1https://businesstech.co.za/news/government/671467/scrapping-e-tolls-hit-with-more-delays/
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.