Why Sanral charges VAT on e-tolls | Fin24
 
  • Load Shedding Schedules

    Find information for Johannesburg, Durban, Cape Town and other cities.

  • Lockdown

    Once restrictions are lifted, will customers return to SA's malls?

  • Exchange Rates

    The rand is approaching the R20/$ mark. Here's why you should care.

Loading...

Why Sanral charges VAT on e-tolls

Feb 05 2014 12:50
Fin24

(Shutterstock)

Related Articles

Vat on e-tolls questioned

 
Cape Town - E-toll is not a tax, but a user charge, according to Vusi Mona, general manager: communications at the South African National Roads Agency (Sanral).

He responded to a query by a Fin24 user on why Sanral is charging VAT on e-tolls.

"That is the same as charging VAT on your rates and legally there is no such thing as a tax on tax," the user wrote.

"So, I would assume that an e-toll is not a tax, but a money making business, designed to extract as much money as possible from people, who earn enough to purchase a vehicle."

Mona told Fin24 that Sanral is a non-profit based organisation and an agency of the department of transport.

"The toll revenue is mainly applied to pay for road infrastructure upgrades and expansions, which were completed in 2010/11 and commenced in early 2008, as well as the repayment of the debt which was incurred to fund this enormous project," said Mona.

"Toll infrastructure is an insignificant cost in relation to the road expenditure incurred, which is to the benefit of all its users."
 
He said during an evaluation process on the e-toll financial model by two independent auditing firms, it was  found that the e-toll financial model is a zero profit model.

"ETC, the operator of the e-toll system, is paid for services rendered as per their tendered rates," said Mona.

"Sanral and its operator are audited in order to ensure that all procurements and payments are done in accordance with the law."


sanral  |  vusi mona  |  myfin24  |  etolls
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
57 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

Do you support a reduction in the public sector wage bill?

Previous results · Suggest a vote

Loading...