Scrapping e-tolls the only solution

The Organisation Undoing Tax Abuse (Outa) thinks the signs are good that the ANC government will cave in on the issue of Gauteng’s hated e-toll system. They point to the fact that, in the budget he delivered on Wednesday, Finance Minister Tito Mboweni committed a further R1.9 billion (as the government has done on previous occasions) to shoring up the SA National Road Agency, which has been bleeding from losses because drivers are boycotting e-toll roads in their millions.

Both Mboweni and Gauteng Premier David Makhura avoided the issue this week (the latter in his State of the Province address) and said an announcement about future funding of the roads will be made shortly by President Cyril Ramaphosa.

Let’s ignore, for a moment, that the government has made this same promise for more than a year.

There would seem to be little other logical path to take for the government than to scrap the scheme. If Ramaphosa allows it to continue, Sanral will have to take legal action against the horde of defaulters. Not only will this be costly (because Outa is already involved in legal action to challenge Sanral summonses on behalf of its members), it will poison whatever is left for the ANC in the well of goodwill in Gauteng.

The fact that the ANC seems determined to cling to the concept of paying a foreign-owned company to collect e-tolls makes you wonder what’s actually in it for them as a political party … because retaining e-tolls is not winning it friends in Gauteng.

We believe Outa’s original suggestion of a fuel levy – made almost seven years ago when the scheme was launched – is still the most viable way to fund such roads. It is simple and has few openings for corruption … but maybe that’s why the ANC doesn’t want to hear about it.