MunicipalNews

More e-toll costs revealed

JOBURG - Despite growing levels of e-toll compliance, a recent presentation by Shoprite Checkers indicated the soaring costs of the system for businesses and consumers.

In February, the Shoprite Group revealed that it would incur an additional R4 million in distribution costs per year due to e-tolling.

Shoprite spokesperson Sarita van Wyk said e-tolling had impacted Gauteng food prices, placing an additional burden on consumers.

“While Shoprite will obviously try to absorb the additional expense for as long as possible, it will not be feasible to absorb the impact on retail prices to consumers in the long run,” she said.

In order to reduce its expenses, Shoprite planned to apply for e-toll exemptions. The retailer operates 529 food distribution trucks which travel on average 140 000km per day.

DA premier candidate for Gauteng, Mmusi Maimane said, “This information reveals the true cost of e-tolling – the fact that the system impacts everybody, whether they are road users or not.

“If this is the impact of tolling on one of the biggest produce suppliers in the country, it is likely that many others, both big and small, will also be forced to increase expenses across the board.”

Shortly after e-tolling commenced, David Williams, financial expert and senior anchor for CNBC Africa said businesses which were bound to comply with e-tolling would bear the brunt of the controversial system.

“It is hard to see how businesses will follow individuals in refusing to pay, which is breaking the law,” he said.

As a result, he said, e-tolling would undoubtedly add to the cost of doing business in Gauteng.

Meanwhile, provincial departments such as the Gauteng Department of Education have also complied with the system, but officials would escape the costs.

Education MEC, Barbara Creecy said all 396 departmental vehicles, including her official vehicle, had been fitted with e-tags.

The department was responsible for all e-tolling costs incurred, she said.

The department had budgeted for e-tolling in the 2013/14 financial year, which was included in the budget allocation approved by the Gauteng Provincial Legislature.

However, despite being asked how much was budgeted for e-tolling, Creecy did not reveal the amount.

In February, the South African National Roads Agency Limited announced that 1.2 million e-tags had been taken up.

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