Reduced Gauteng tolls not ideal

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Toll plan Gauteng

Independent Newspapers

A toll gate on the N1 North just before the Beyers Naude offramp in Gauteng. Photo: Dumisani Sibeko

The reduced Gauteng toll fees were welcome but not ideal, various commentators said on Wednesday.

“Although significantly reduced from the original plan, they will still have a negative impact on consumer spending,” Chris Gilmour of Absa Asset Management Private Clients said.

Tabling his 2012/13 Budget in the National Assembly, Finance Minister Pravin Gordhan said a special R5.8 billion appropriation would be paid to the SA National Roads Agency Limited to ease the toll burden in Gauteng.

Motorists would now pay 30 cents a kilometre, instead of 66

cents as originally proposed for the Gauteng Freeway Improvement Project. There would be a monthly cap of R550 for frequent users.

The National Association of Automobile Manufacturers of SA (Naamsa) welcomed the announcement, but said it would have preferred another solution.

“The automotive industry would have preferred to see freeway improvement programmes being financed through an administratively more efficient and less costly fuel levy,” Naamsa president David Powels said.

Cliff Watson, executive tax manager at Grant Thornton Johannesburg, said the move was encouraging but had limits.

“The idea of the halving and capping of these fees is welcomed. However, it should be taken into account that a person with an e-Tag would need to travel approximately 1833km per month, or 46km per day one way on the toll road to reach the cap of R550 per month.”

He pointed out these motorists would also be paying an average extra R51.24 a month due to the increases in the fuel levy and Road Accident Fund announced by Gordhan.

The general fuel levy will increase by 20 cents a litre of petrol and diesel from April 4. The Road Accident Fund levy would rise by eight cents per litre of fuel.

Business Unity SA welcomed the lowered toll costs.

“On the Gauteng tolls, we welcome efforts to reduce the impact of the programme on the economy.”

The e-tolling regime will take effect on April 30. - Sapa

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