Fuel levy should be enough to fund Gauteng highway upgrades, says Msimanga

Fuel levy should be enough to fund Gauteng highway upgrades, says Msimanga

Democratic Alliance supporters. Picture: Nigel Sibanda

However, Electronic Toll Collection’s research indicates that fuel levies alone are not enough to fund infrastructure development.

An alternative solution to the e-toll debacle has been provided by the Gauteng premier candidate for the DA.

However, it seems much more than just the current taxes on fuel will be needed to maintain and upgrade the Gauteng highways, reports Centurion Rekord.

Solly Msimanga, who has spoken extensively on the e-tolls, believes motorists already pay enough when filling up the tanks.

ALSO READ: Msimanga, Mashaba to take ‘scrap e-toll march’ to Makhura’s office

“What many people don’t realise is that they pay around R5 per litre in taxes every time they fill up their vehicles,” Msimanga said.

Last April, Arrive Alive put the general fuel levy on petrol at R3,37 per litre.

Combined with the road accident fund levy of R1,93, motorists paid R5,30 per litre in taxes.

Following finance minister Tito Mboweni’s budget speech last month, motorists can expect to pay 29 cents more in fuel levies from April.

“From the start this money, or at least a portion of it, was set aside for the upgrading and maintaining of roads,” Msimanga said.

“The road accident fund is bankrupt, but we are still putting fuel in our vehicles. So where is the money going?”

However, according to the company that collects e-toll fees for Sanral, the fuel levy alone would not be enough to cover the upgrades.

Electronic Toll Collection has in the last year conducted extensive research into the matter, according to CEO Coenie Vermaak.

“What is clear from the research is that the fuel levy is completely inadequate to fund infrastructure development,” said Vermaak.

“Fuel levies currently contribute to around 40 to 45 percent of real income government needs to maintain infrastructure.

“Thus to put it in context: a fuel levy of around R12 per litre will ensure that all road infrastructure can be adequately maintained.”

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