Budget 2023
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Treasury stays firm on e-tolls

Cape Town - The National Treasury made it clear in the National Budget on Wednesday that the government will not consider scrapping the controversial e-tolls in Gauteng, and has not considered using part of the road levy to subsidise the system.

Finance Minister Nhlanhla Nene acknowledged opposition to the system: “Concerns regarding the socio-economic impact of toll tariffs have been heard and revised monthly ceilings will shortly be proposed.

“We will include a national contribution to meeting the associated cost in the adjustments appropriation later this year,” he said in an apparent reference to poor registration by motorists.

He said measures would be taken to “ease compliance” and improve enforcement “but cost recovery from road-users will continue to be the principal financing mechanisms for this major road system”.

He told a media briefing ahead of his budget speech that government was committed to standing behind Sanral, the national roads agency which administers the Gauteng e-toll system.

Although an increase in the fuel levy of 30.5 cents a litre would take effect in April, there is no suggestion that any of the increase would go towards subsidising – or abolishing – the toll road system. This was one of the suggestions of Econometrix economist Azar Jammine ahead of the budget.

Nene said he wished “to endorse Deputy President Cyril Ramaphosa’s carefully balanced approach to resolving the Gauteng Freeway financing matter”.

Treasury director general Lungisa Fuzile said he was somewhat wary of entering the political terrain, but Treasury is in discussion with all the parties involved in the tolls matter, including the Gauteng government and Sanral.

He emphasised that the government is dedicated to the user-pay principle regarding the e-tolls system, but he also said that poor people could see an adjustment “that doesn’t deviate from the user-pay principle”.

Fuzile suggested there could be a roll-out of further toll roads in other places at a later stage

“Gauteng e-tolls can be viable  and the mechanisms can be extended (to other places)… in time.”

The Budget Review document acknowledged that uncertainty about revenue to finance the Gauteng e-tolled freeway system had compromised Sanral's ability to fund the rest of its toll portfolio.

During 2013/14, Sanral's capital expenditure totalled R11.6bn, a decline of R575m compared with 2012/13.

 
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