E-tolls rise from the dead
CHING-CHING: MOTORISTS WAIT WITH BATED BREATH FOR DECISION ON CONTROVERSIAL TAX
The ANC government is grasping at straws with the grand, failed e-tolls scheme with Finance Minister Tito Mboweni insisting ‘users must pay’. With the deadline looming on the controversial project’s fate, his hard stance can punish the party at the polls and even lead to a tax revolt.
We fear, because of the financial state of SA, government might be tempted not to scrap e-tolls
Analysts believe if it insists on enforcing system, it will be hit hard in the local elections.
Fred Nel
DA shadow transport MEC
The grand, failed e-tolls scheme – less than 20% of users are paying – is rising from the dead, as the ANC struggles to make ends meet in its budget. Finance Minister Tito Mboweni said in his budget speech last week vast infrastructure projects would be endangered “if the end user does not pay a cost-reflective tariff for usage”.
Even opponents of e-tolls within the ANC appear to have been silenced. Gauteng premier David Makhura, who has in the past spoken in favour of scrapping the system, said not a word about it in his State of the Province Address last week. And other government-connected agencies were reluctant to comment.
The South African National Roads Agency referred queries to the department of transport, which had not responded by the time of going to print, despite receiving the questions on Friday. The same response came from the department of finance.
An end-of-month deadline has been placed on a decision on e-tolls.
If Mboweni’s hard stance is adopted, the ANC could be severely punished at the local government elections later this year, especially if it tries to force motorists into compliance by refusing to renew car licenses unless their e-tolls are paid.
This may even provoke a tax revolt, say experts.
Political economy analyst Daniel Silke said the government was caught between a rock and a hard place when it came to e-tolls.
Silke said the system was poorly implemented from the start.
“It is also too expensive ... that’s why it is no surprise residents have rejected it,” Silke said.
“Whichever decision could cost the ANC votes, as it comes just before the local government elections.”
Silke said he didn’t know if the government could withstand the political backlash or a tax revolt.
“The only solution is a watered-down plan or programme. This is a real headache.”
Fred Nel, the Democratic Alliance shadow MEC for roads and transport in Gauteng, welcomed the decision to announce the future of the e-toll system soon.
“Please stick to the deadline this time,” he said.
The DA was concerned that Mboweni did not make provision for the e-toll system in the settlement of the loans or operational costs in his budget speech.
“David Makhura kicked against the system from the start ... but the system runs on national roads, not provincial,” Nel said.
“We fear, because of the dire financial state of the country, government might be tempted not to scrap the system, despite its low-income payment rate.”
The Justice Project South Africa chair, Howard Dembovsky, said the government’s response had not been forthcoming and was delayed by excuse after excuse.
“It’s like a Mexican standoff between government, who won’t back down, and citizens, who are telling the government to go to hell.”
It became clear what the plan was when the Administrative Adjudication of Road Traffic Offences (Aarto) amended Act was published for public comment.
“The Aarto Act was designed to claim fines. The Aarto enforcement order will also prevent the motorist from renewing licence cards and licence discs.”
Dembovsky said government was convinced it could scare motorists into paying e-tolls.
“That could also spark a new civil disobedience where we may see motorists also refusing to pay the licence disc or renewals.”
To prosecute motorists and impound their vehicles was not a solution.
“The prison population is already over 300 000, and there are more than 2.5 million people not paying their e-toll accounts.”
Dembovsky said he believed a simple 10c increase in fuel levies would have achieved all the e-toll project had tried to.