Premier denies DA claims over solution to pay for e-tolls
GAUTENG Premier David Makhura has reacted with outrage to DA claims that his party was proposing an increase in income tax to pay for the controversial e-tolls.
Makhura’s reaction came after DA spokesperson on roads and transport Janho Engelbrecht told the media over the weekend that he had reliably learnt that the ANC was proposing an increase in income tax to pay for e-tolls.
Engelbrecht said it was unacceptable saying it would place further strain on overburdened residents.
“In addition to this, residents will also be taxed further in order to pay for the proposed National Health Insurance that government wants to implement.
“The DA has been against the implementation of e-tolls since its inception, as it is an unfair tax burden on our residents who are struggling to make ends meet.”
Makhura slammed Engelbrecht for his comments saying a final decision on e-tolls has yet to be made.
“President Cyril Ramaphosa has tasked the minister of Transport, minister of Finance and the premier of Gauteng to make proposals on a lasting solution with regards to the stalemate on e-tolls…
“The three leaders have been hard at work to find a solution, even extending the invite to relevant stakeholders,” Makhura’s spokesperson Vuyo Mhaga said.
“The claim by the DA on the e-tolls and NHI are baseless and completely false”
He said instead of the DA making concrete proposals on how to solve problems, the DA is adopting scare tactics and spreading lies on the e-tolls and the NHI.
“We shall not be deterred from searching for genuine solutions that benefit the people.”
Meanwhile, the Organisation Undoing Tax Abuse (Outa) has again called on the government to scrap e-tolls.
Outa’s Wayne Duvenage repeated his organisation’s call following media reports over the weekend that the Cabinet was likely to consider a proposal to discount e-tolls by 70%.
“Reducing e-toll tariffs in the hope that compliance and revenue will increase won’t rectify the dismal e-toll revenue situation and make matters worse when it comes to settling the bonds.
“What is needed is to abolish the e-tolls and seek alternative funding for the Sanral debts.”
He said the current compliance levels are about 20% and just bringing in R55 million a month, which was a shortfall of almost R250m per 0month.
Duvenage said even if there was a 100% compliance by motorists with a 70% discount, this wasn’t going to bring Sanral much revenue.
He said Sanral tried reducing tariffs in 2015 by offering a 60% discount on outstanding debt, just two years after the scheme started saying all that discount did was to raise 2% of the outstanding debt while compliance levels continued to decline.
He further said the Gauteng e-toll project was the most expensive and inefficient scheme in the world and would never achieve its intended aims of financing the overpriced Gauteng freeway upgrade.