# High noon for e-tolls

- Link: https://dearsouthafrica.co.za/2020/02/25/high-noon-for-e-tolls/
- Published: 2020-02-25T14:24:34+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/02/20191145/E-tolls-
1-555x401-1.jpg "E-tolls-1-555x401")

It’s high noon for the future of e-tolls on the Gauteng Freeway Improvement Project(
GFIP).

A final decision on the controversial scheme is expected to be made in Wednesday’s
budget speech, following the lengthy stand-off between the motoring public and government
over the non-payment of e-tolls.

Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), said on Monday
it expects e-tolls to be scrapped, with the decision being communicated either in
the budget or in a cabinet announcement this week.

The Democratic Alliance (DA) in Gauteng however expects Finance Minister Tito Mboweni
to announce in his budget speech that e-tolls are here to stay.

**Delays and indecision**

In his medium-term budget policy statement in October last year, Mboweni announced
that government had decided to retain the user-pay principle and e-tolls on GFIP.
However, there would be a further dispensation and value-added services while compliance
would also be strengthened, he said

Read: [Government back-tracks on Tito Mboweni’s e-toll comments](https://www.moneyweb.co.za/news/south-africa/government-back-tracks-on-tito-mbowenis-e-toll-comments/)

There have been repeated delays by government in announcing its decision about the
future of e-tolls.

The most recent of these follows Minister in the Presidency Jackson Mthembu giving
the assurance at the post-cabinet meeting media briefing in December that a decision
would be taken in the first cabinet meeting of 2020.

“We will give South Africa an idea about what we are going to do with the Gauteng
e-tolls, but secondly we will also give South Africans an idea on how are we going
to improve our road infrastructure throughout the country.

“The decision that cabinet might ultimately arrive at might go beyond GFIP, but 
I think you will also be very proud of the options that cabinet would have agreed
on,” he said.

**Cabinet decision still under wraps**

The first cabinet meeting of the year was held on February 12, but no media conference
was organised because of President Cyril Ramaphosa’s State of the Nation Address.
A media statement issued last week that included the decisions taken at the meeting
did not mention e-tolls.

Acting cabinet spokesperson Phumla Williams said on Monday the media statement only
included updates of what was discussed by cabinet.

Williams was unable to comment on the status of the decision on e-tolls, adding:“
I’m only responding to decisions that were taken by cabinet, and that was what was
in the statement.”

Transport Minister Fikile Mbalula was appointed by Ramaphosa to head a task team
to report to him on the options on the table with regard to e-tolls, with the recommendations
in the report debated by cabinet last year.

Attempts to obtain comment on Monday from Mbalula’s spokesperson, Ayanda-Allie Paine,
were unsuccessful.

Duvenage said the government has reneged several times on promises made to the public
last year about announcing a decision on the future of e-tolls, which has resulted
in a void.

**Hints that it may be scrapped**

Duvenage said Outa expects e-tolls to be scrapped because the e-toll management 
contract for GFIP, which was extended in December for a further three months, has
not been extended and expires early next month and no e-tolls summonses have been
issued for a year.

Read: [Sanral extends ETC e-toll contract for another three months](https://www.moneyweb.co.za/news/south-africa/sanral-extends-etc-e-toll-contract-for-another-three-months/)

However Duvenage conceded that government could extend this contract at the last
minute, as it did in December.

>  “The scheme is dead,” he said. “What are they going to do? If they try and resurrect
> it, there will be chaos and absolute outrage.”

Duvenage said Outa’s legal case to defend 2 500 to 3 000 motorists who received 
summonses for non-payment of e-tolls was stopped, because the SA National Road Agency(
Sanral) told its legal team to stop enforcement.

**Summonses ‘in limbo’**

He said these summonses are still “in limbo” because Sanral’s legal team has on 
several occasions not responded to questions about what the stopping of enforcement
meant for Outa’s case, stating that they were waiting for instructions from their
client.

“Our case is still extremely strong and it’s stronger now that they [Sanral] have
just capitulated,” said Duvenage. “They don’t have a case anymore.

>  “I don’t know what argument they have to defend themselves in court, let alone
> in the court of public opinion.”

**Motorists unambiguous**

The Automobile Association (AA) said on Monday that it would be a dangerous and 
ultimately damaging tactic, especially for the poor in the country, if the government
turned to fuel levies as a source of revenue in the budget.

This appeared to contradict an AA statement issued earlier this month in which it
said the findings of extensive research conducted among motorists are unambiguous
and support calls for a review of e-tolls, with a view to scrapping them entirely
and finding alternative funding mechanisms, such as adding to the General Fuel Levy
currently imposed on fuel.

Read: [Scrapping e-tolls a viable solution – AA](https://www.moneyweb.co.za/news/south-africa/scrapping-e-tolls-a-viable-solution-aa/)

However, AA spokesperson Layton Beard confirmed that the AA has always said that
e-toll costs should be included in the fuel levy – but that this does not mean the
fuel levy must increase.

“There must be a portion within the existing fuel levy that must be ring-fenced 
specifically for e-tolls without increasing the levy,” he said.

[article](https://www.moneyweb.co.za/in-depth/budget/high-noon-for-e-tolls/) by 
Moneyweb