Money and Markets

There’s a plan for etolls, but Treasury says it can’t release it

Business Insider SA
(Instagram, @officialoutasa)
(Instagram, @officialoutasa)
  • It was anticipated that finance minister Tito Mboweni would release details on how the state plans to address the highly unpopular etoll system during his Budget speech.
  • National treasury officials said there is a plan to address it, but that the department of transport would instead release it.  
  • Officials repeatedly missed their own deadlines to find a solution to the tolling system after being instructed by President Cyril Ramaphosa.  
  • For more stories visit Business Insider South Africa.

There is a plan to address the controversial e-toll system in Gauteng, but national treasury said it cannot release it.

President Cyril Ramaphosa instructed transport minister Fikile Mbalula, Gauteng Premier David Makhura and finance minister Tito Mboweni to find a solution to the unpopular tolling system in the middle 2019.

They have repeatedly missed their own deadlines to find a solution.

See also: Here are the biggest bombshells in the Budget – including taxpayers getting R2 billion in tax relief

It is estimated that more than three-quarters of motorists do not pay their etolls, while authorities have been instructed to stop the prosecution of non-paying motorists.

It was speculated that Mboweni would release details on an etolls solution, but he failed to address it during his Budget speech on Wednesday afternoon.

But, speaking to Business Insider South Africa at the release of the national Budget, treasury officials said that there is a plan in place to address the e-tolls situation.

Also read: You’ll soon pay 13c more for every plastic bag – with proposals to tax all single-use plastic and straws

Officials, however, said that it is not Treasury’s prerogative to release the plan, and that the department of transport is responsible for the release of the plan.

In Budget documents, released alongside Mboweni’s speech, the treasury said the lack of clarity on the state’s position on the user-pay principle of e-tolls poses a threat to the country’s growing deficit.  

The treasury said declining e-toll revenue will have to be offset by other measures to repay South African National Roads Agency Limited (Sanral) debt.

It could also affect funding for other investment projects, it said.

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