Fin24

Cronin: Fuel levy unlikely to fund tolls

2011-07-12 12:59

Johannesburg - It is unlikely that the Gauteng tolling system will be funded by an increased fuel levy,  Deputy Transport Minister Jeremy Cronin said on Tuesday.

"Many of those objecting to the e-tolling have argued that instead of tolling, the fuel levy should be ring-fenced for road construction and maintenance and not go into the general fiscus," said Cronin at the Southern African Transport Conference (SATC) which opened in Pretoria on Monday.

"The National Treasury is opposed to ring-fencing tax revenues because (it) brings about inefficiencies in government spending over time as the lack of transparency means that spending agencies lose the accountability of the budget process for how effectively they apply the funds."

Cronin explained that the actual amount allocated out of the budget for road infrastructure was more than the amount raised from the fuel levy.

"In the 2009/10 financial year, for instance, the amount that would have been available for road infrastructure from the fuel levy (had it been ring-fenced) was R22bn whereas the actual amount allocated to road infrastructure was R29.2bn - a shortfall of R7.2bn."

Cronin also questioned whether finance raised from the fuel levy should only be invested in road infrastructure when other transport modes such as rail were also in need of financing.

Following the public uproar over the original tariffs for tolling, introduced in February, it was announced earlier this month that tariffs would be reduced.

According to proposals, users of light motor vehicles would pay 40c/km instead of 49c/km, minibus taxi drivers 11c/km instead of 16c and bikers 24c instead of 30c/km.

For medium vehicles, the toll fee was reduced from R1.49/km to R1 and for large vehicles from R2.97 to R2. For commuter buses the cost would be reduced from 50c/km to 36c.

Organisations which initially opposed tolling reacted, saying that it would still pose a financial burden on already overtaxed road users.

Comments
  • Mike or Mpho - 2011-07-12 13:13

    minibus taxis only pay 11c/km??? why? Why are commercial/medium vehicles charges excessive rates while a commercial vehicle such as a minibus only pays 10% of that amount? It makes no sense

      Nuck Choris - 2011-07-12 14:54

      If there was the politcal will and the government really was fair and wanted to collect the taxes stolen buy the taxi industry the charges for the tolls would be the other way round.

  • Badballie - 2011-07-12 13:18

    Who cares I definitely will no longer be using any Toll roads in South Africa, the Government thinks we are all stupid, let the stupid ones pay the toll the rest of us will use the alternate routes the government is required by law to maintain.

      Robbie - 2011-07-12 14:31

      That is why we are all buying off road capable vehicles. ;-)

      lamha vukawe - 2011-07-28 11:17

      Yeah viva GPS, set it to avoid toll routes. Takes a bit longer to get there but you can enjoy the scenery.

  • 2c - 2011-07-12 13:22

    Had enough thank you ANC. We are packing up and moving to another Province. You are bleeding us, the Gautengers dry. We can't breathe anymore as you are sucking every last drop out of our profits. We will not earn as much there, but our lifestyle will be simpler and without strikes and... we can start to save up again. Unfortunately all our employees will have to find new jobs.

      papaown - 2011-07-12 14:56

      get a grip, why not move to an area that allows you to use the Gautrain?

  • MontyP69 - 2011-07-12 13:25

    Why do Mini Bus Taxi's only pay 11c\km but a Motor Bike pays 24c\km

      robyn - 2011-07-12 15:02

      because as far as the government is concerned the poor use taxis . Never mind there being 8 or so people in a taxi and often 1 or 2 in a car going to work

  • NewsICON - 2011-07-12 13:31

    Am I reading this incorrectly or is the minister saying that we have to pay the toll because the government is too ineffecient and cannot manage the funds from a fuel levy?

      Robbie - 2011-07-12 14:30

      Precicely... they dump all levies into the common pool to pay for their Merc's and BMW's. After that there is no money left for maintaining roads let alone new ones! This makes me so angry to hear such illogical drivel from politicians.

      Le Jer - 2011-07-12 14:40

      Unfortunately I think you are correct. Additionally, Taxi's...who generate income and should therefore be taxed more are actuallly way lower than a private car that generates no income. Entitlement due to the " poor me " syndrome will have no place in a future SA if it wants to be competetive globally !!!

      mario88 - 2011-08-11 23:33

      @robbie. "from politicians" let me tel you : The ANC is a bunch of criminals and nothing more. Got it?

  • Eridge Nevill - 2011-07-12 13:37

    What is a light vehicle, medium vehicle and large vehicle?

  • Sheda Hab - 2011-07-12 13:40

    Why should taxis pay 12c and we pay 40c and R1,49. If it is to help private people what about my car. If it is to help the businessman taxi then what about my trucks. The day the toll roads open I am "running out of petrol" in the fast lane. There are 3 other lanes - who is joinin me.

      info - 2011-07-12 15:44

      It always amazes me how the government taxes the hell out of all businesses, except the taxis. I bet they have their fuel subsidised heavily - but this is being kept secret. That is why the taxis don't riot every time the price of petrol goes up.

  • Andrew - 2011-07-12 13:43

    If there was true transparency, the state could have justified quite easily. I honestly dont think many public servants are close to being qualified for the positions they hold. T.I.A as they say

      Robbie - 2011-07-12 14:33

      That is patently obvious of late. ;-)

  • Sisie - 2011-07-12 13:49

    You know that when ever they keep on coming up with excuses then you know that they are lying. I wonder how they live with themselves Remember at least half of what you pay at the filling station is taxes of some sort. So if you calculate that i am sure you will find that Cronin and buddies are really bull****ing you.

  • Gary - 2011-07-12 13:49

    I just love how taxi's who pay ZERO tax and contribute nothing to the state coffers manage to get a cheaper rate than a motorcycle.

      Nuck Choris - 2011-07-12 14:47

      totally twisted I know, but you must look after your voter base

      lamha vukawe - 2011-07-28 11:14

      Yeah, I am going to register my Caddy 7 seater as a taxi :-)

  • Babba x - 2011-07-12 13:56

    They don't give a sh@t. We (taxpayers)are paying their fees anyway. The ANC is smiling all the way to the bank....

  • Justin Schon - 2011-07-12 13:57

    Just increase the fuel levy by 50c chop that way you can keep your current fuel levy, but rather just add a premium to the fuel for road capital projects. I understand the current levy is already used up for state banquets and sushi dinners. But then just ask for 50c more for the road.

      Sol Pearson - 2011-07-14 09:49

      Just a quick thought Justin and others commenting here say just add it to the fuel levy. Why should we living in small towns 100's of kilometers from Gauteng subsidise you guys. Please remember not everybody lives in GP.

      lamha vukawe - 2011-07-28 11:14

      I agree, increase the fuel levy in GAUTENG as that is where 80% of people that work are living anyway. Already the price of upcountry fuel is more than what is paid at the coast...

  • G7 - 2011-07-12 14:23

    yip next they will make us pay passanger tax as we already paying fuel ,licence disk tax renewal ,fuel emissions ,tax on the car you buy ,tax on the spares you buy ,3rd party ,tax at the garage on other crap speedfines where does all this money go to as the more we pay the more they want

      Dros - 2011-07-12 15:35

      Bunch of Cronies

  • branden.hart - 2011-07-12 14:52

    The decision has already been made - All of this is just window dressing - Have you seen the covered price boards between 14th Avenue and Beyers Naude'

  • 5cents - 2011-07-12 14:59

    Scrap the RAF (that is a giant sink hole for money) and relocate that money to road infrastructure. Then make it mandatory for everyone to have 3rd party insurance but via the private sector. Solving the problem of 3rd party liability and putting more funds for roadworks and getting rid of the corrupt RAF

      Stevie - 2011-07-12 16:13

      Do you think CT will become the new corporate HQ of the country?

      Jamesons - 2011-07-12 16:44

      I agree, small business are already reducing their staff. 100's of thousands of jobs losses, its a shame of what our goverment has done

  • saburger - 2011-07-12 15:42

    Only 15c a litre from fuel levy will be sufficient to fund R20 billion for road upgrades - Our 2011/12 budget on fuel levies for petrol and diesel is already 262,50c & 246.51c a litre respectively. The Road accident levies are 80c thereof, and customs and excise levies are 4c thereof. What does government do with the remaining "general fuel levy" of 177.50c per litre for petrol and 162.50c per litre for diesel? Additional toll fees should be rejected in total! Government should be accountable to the Public what they do with our fuel levies!!!

  • A View - 2011-07-12 15:56

    Cronin, I don't only pay fuel tax, I pay license fees, number plate fees, CO2 omissions tax, personal income tax, VAT, which is then miss spent by the party you represent in government or just chucked down the drain by corruption. Get real Cronin, we are taxed to the hilt and there is simply no justification to levy another tax while your party miss spends  the tax moneys we as citizens provide. NO MORE PERIOD!!!!

  • Stevie - 2011-07-12 16:11

    This tells me two things: 1. Jeremy Cronin is an idiot. 2. The taxi industry is the only thing government is afraid of.

  • Analyst - 2011-07-12 16:36

    The only solution is for motorists to avoid these roads at ALL times and let the toll system go to waste. But the typical non-poor South African will simply "get used to it" and life goes on until the next thing to get excited about. Only once the non-poor learn how to oppose government together can we start to have a slight chance in stopping this.

      lamha vukawe - 2011-07-28 11:11

      It would be easy to avoid these toll roads if they were all newly built roads. However these clowns are going to toll a road that was built over 30 years ago (M1 between Jhb and Pta for eg). Excuse me, but we have already paid for theis road to be built that long ago. Tolling exiasting roads is IMMORAL, regardless of how much they think they have 'upgraded' them.

      CJ - 2011-08-11 12:27

      what you mean 'avoid' these roads?? Unfortunately, the alternative roads are so bad that I will kill myself the first day...

  • Graham Arthur Muller - 2011-07-12 16:40

    This statement by the minister is disingenuous. The levy at it's current level might be insufficient. But the levy can be raised. The issue is what is the least cost, most equitable way of raising the required funding. The fuel levy wins this argument comfortably.

  • Cui Bono - 2011-07-12 17:02

    Why were the Gauteng public not properly consulted before this then ???

      lamha vukawe - 2011-07-28 11:09

      Obviously the wrong people have been voted into government? They clearly are not serving the best interests of the idiots that voted them in.

  • David Kirk - 2011-07-12 22:46

    There are some good points for and against Fuel Levies vs Tolls - Cronin just isn't making any of them. http://twentythirdfloor.co.za/2011/07/12/driving-blind-fuel-levy-v-tolls/

      Lump of coal - 2011-07-13 10:09

      How can a Communist be in charge of ANYTHING if we are supposedly a democracy ???? Communism does not allow for Capitalist policies so this old fart can rather bugger off to Cuba, Venezuela or Russia !!!

      Sol Pearson - 2011-07-14 09:46

      Lump of Coal get an education Russia is not a communist country you idiot, China however is.

  • Watcher - 2011-07-13 08:52

    jeremy Cronin obviously knows that the best lie is a half truth. What He says relating to 2010 expenditure might be true but when Mac Maharaj was minister of transport he introduced the 10c/lt levy that was meant to be used for road building. Equate the money raised by this levy from 1995 to 2010 and the actual expenditure on roads and there is a gaping disparity. The balance of the "roads levy" has just been absorbed by the fiscus. The second point that Cronin makes is also not in context. I don't expect the fuel levy to repay the total cost in one year. Just as the roads have not been built in one year we could repay the loans raised over a period of say 5 or 10 years and still have money over. The next point that Cronin misses is that if we had not let our roads get into such a state of disrepair we could have provided employment for many people over a longer period which would also have reduced the level of grants and subsidies paid to yhe poorest people. You don't get agrant if you can get a job. Spend less on 4x4's for ministers and create jobs, not poverty for the bilk of our citizens.

      YasButIDunno - 2011-07-14 09:30

      Spot on sir! Does anyone else get the impression that the nightmare that passes for a road between Gilooly's and Benoni is deliberately being delayed to punish the public for protesting the tolls? Whoever is responsible for those pathetic white dots that pass for temporary markings at Giloolys, should be charged with criminal endangerment. There is no rhyme or reason to them, they're all over the place and the motorists don't know where one lane ends and another begins.

  • Horza - 2011-07-13 10:18

    Also, there are people to be paid off and profits to be made.

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