Fin24

Naamsa: Use fuel levy for Gauteng tolls

2012-02-22 17:48

Johannesburg - The solution to the Gauteng tolls announced in the budget on Wednesday is not ideal, the National Association of Automobile Manufacturers of SA (Naamsa) said.

"The automotive industry would have preferred to see freeway improvement programmes being financed through an administratively more efficient and less costly fuel levy," Naamsa president David Powels said.

Naamsa, however, welcomed Finance Minister Pravin Gordhan's announcement that a special R5.8bn appropriation would be paid to the SA National Roads Agency Limited to ease the toll burden in Gauteng.

Motorists would now pay 30c a kilometre, instead of 66c as originally proposed.

Naamsa had in general welcomed the budget given the slower growth in the domestic economy and uncertain global economic outlook.

"The minister had tabled an appropriate and disciplined set of budget proposals intended to support growth, employment and poverty alleviation through targeted interventions," Powels said.

"Particularly noteworthy was the substantial expenditure earmarked for competitive enhancing capital infrastructure development focusing on projects in the energy, transport and logistics sectors."

The R9.5bn in personal tax relief would have a positive impact on consumer sentiment and demand, which could in turn help vehicle sales.

However, Naamsa was concerned that the increase in capital gains taxes for individuals and companies was unexpected and could prove counterproductive in promoting investment.

The association endorsed the public sector infrastructure programme, support for industrial development and economic zones, the rollout of employment programmes and the investment in further education and skills, Powels said.

Of concern was the funding for the proposed national health insurance system.

"These matters required careful evaluation, including detailed impact assessment, so as not to prejudice future consumer demand and economic growth in South Africa," Powels said.

Comments
  • Anthony - 2012-02-22 18:31

    DONT REGISTER FOR YOUR E TOLL--60 cents down to 30 cents per km still dosent make it right

      Devon - 2012-02-22 23:45

      Agreed... How much will the taxis be paying then, hmmm?

      Michael - 2012-02-23 08:21

      @Devon - the taxis and buses are exempt.

  • Michael - 2012-02-23 08:24

    Dear Pravin - what about the foreign cars that visit Gauteng. What about the rest of the country that use our roads and also Gauteng contributes more than 40% of the GDP to this country. Just add 1c to the litre to pay for the tolls then everybody in SA contributes. So, we will not register - you can go and suck egggs!

  • eric.vanvuuren - 2012-02-23 16:29

    And the rest of the commenting is just deleted like that? Whow? News24 is in the grip of the beast it seems.

      eric.vanvuuren - 2012-02-23 16:30

      Shame on you News 24 Shame on you!!!!

  • Kevin - 2012-02-24 07:29

    There should be no toll. Come on Gautengers .Boycott and show your power.Paying toll is wrong. Paying toll to an overseas company is disgusting.BOYCOTT

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