South Africa may finally call the time of death on e-tolls. Finance Minister Enoch Godongwana could be the one to end the project entirely during his Medium Term Budget Policy Statement (MTBPS) presentation in October.
Keep those expectations low, however — this isn’t a done deal. But there’s no harm in keeping your fingers crossed.
The (potential) death of e-tolls
The Automobile Association (AA) says that if the government doesn’t cancel the project entirely, it will continue to bleed money. The AA also said the government should reimburse the fees paid over the years and cancel the outstanding debt. And we’d like to be given R10 million bucks. Unfortunately, we can’t always get what we want.
In the past, the government has been putting off making a final decision on the e-tolls. Since its inception in 2013, the project has been a complete failure, with several dates announced before that didn’t come to fruition. A decision was meant to be made in 2019, though that date came and went.
In June this year, Mr. Mbalula indicated that Mr. Godongwana would clarify the future e-tolls in his MTBPS, a date we trust will be kept,” said the AA.
Read More: No signs that govt will increase fuel levy to pay for e-tolls
“Motorists correctly question government spending in many areas including, for instance, huge salaries and bonuses to executives at poorly run State-Owned Enterprises, while they are being asked time and again to make contributions on top of the taxes they’re already paying.”
Despite countless meetings over the years meant to decide the fate of e-tolls, little has happened. It seems likely that the project will be scrapped since fewer than 18% of motorists pay these tolls. The main question is what will replace it but the answer should arise soon. There aren’t any dates set in stone for the Medium Term Budget Policy Statement yet. It will take place in late October, with a firm date turning up closer to the time.
Source: BusinessTech