Share

'Local firms may pay for public transport'

Johannesburg - The government is debating a new tax on businesses, which would be earmarked for public transport development in the areas in which they operate.

Deputy Minister of Transport Jeremy Cronin disclosed this on Tuesday at a discussion on sustainable transport hosted by the World Wide Fund for Nature.

Cronin said that the government had already extended the mandate of infrastructure development to municipalities, but the costs are heavy and would soon be unmanageable.

Rail and bus networks were subsidised by government at a combined cost of R5.1bn this financial year.

"Taxing local businesses would make them more democratically accountable for infrastructure development," said Cronin.

Another advantage, according to Cronin, would be a rise in property values in areas which would benefit from infrastructure refurbishment.

"Think about the impact of the R25.5bn Gautrain public spend on private property values around the stations," he said. 

The introduction of this tax is currently under serious discussion in government. 

South Africa has a substantial discrepancy between the quality of passenger transport in urban and rural areas. Cronin's address focused on this duality, and in particular lack of adequate infrastructure in rural areas and the congestion of heavily developed urban centres. 

"There is inadequate densification in urban areas - they are spawling," said Cronin.

Poor planning around housing, especially government-provided housing on the periphery of cities, is one of the causes of the problem. Another is the lack of reliable and affordable public transport.

Research by the SA Chamber of Commerce and Industry showed that peak hour congestion on Johannesburg's Ben Schoeman highway cost businesses in Gauteng R15m per hour.  

Cronin said that an ideal public transport system for South Africa would be publically controlled and integrated into city facilities such as hospitals, schools and shopping centres.

 - Fin24.com
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.6%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.40
+0.4%
Palladium
998.40
-0.3%
Gold
2,210.05
+0.7%
Silver
24.65
+0.0%
Brent Crude
86.09
-0.2%
Top 40
68,079
+0.6%
All Share
74,269
+0.5%
Resource 10
56,875
+2.2%
Industrial 25
103,593
+0.3%
Financial 15
16,463
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders