NewsNews

E-tolls to be increased

The Department of Transport has published revised e-toll tariffs for the Gauteng Freeway Improvement Project (GFIP) that will be effective and payable from March 1.

In a statement issued on Tuesday, Sanral said the Minister of Transport approved the 2020 toll tariffs as per Sanral’s recommendations. The adjustments were gazetted on February 7.

“What does that mean? We have got to assume that when you see tariff hikes in March that e-tolls are here to stay because if they were going to be cancelled, they wouldn’t put the tariffs up and waste people’s time reading a gazette,” said Undoing Tax Abuse (Outa) CEO Wayne Duvenage reports Moneyweb.

Duvenage anticipates a government announcement on the future of e-tolls either in President Cyril Ramaphosa’s State of the Nation Address (Sona) on Thursday or in the budget speech later this month.

According to Sanral’s statement the adjustments are made on an annual basis in line with the Consumer Price Index (CPI) as obtained from Stats SA. The CPI percentage that was applied to determine the March 2020 tariff adjustment is 4,31%.

Sanral uses the inflation rate as a guide so that, the toll tariffs remain the same in real terms, meaning there is effectively no increase to the rate from when the initial toll tariff that was implemented, said communications general manager, Vusi Mona.

Discounts offered at specific toll plazas for frequent users, as well as qualifying local users still apply. Application for discounts can be made at the toll plaza offices, the statement reads.

The Department of Transport, through its agency Sanral, uses tolling selectively to implement major road infrastructure projects. Only 13% of the 22 214km network constitute toll roads.

Toll roads allow for the borrowing of capital in order to develop road infrastructure when it is required, rather than having to wait until funds are available from a strained fiscus.  Toll monies are applied to maintain, operate and improve toll roads, as well as to service debt incurred to implement a toll road project.

The cost in the event of delayed maintenance on roads can be up to 18 times higher than it would have been if routine preventative maintenance was undertaken.

Toll is a user charge and is paid only by those that make use of the road, Sanral said.

Related Articles

Back to top button