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Govt had plans to raise money for e-tolls through fuel levy, says Mbalula
'The fuel levy story has become very messy over time and is no longer an option we can consider,' said the minister.
An E-toll gantry is seen along the N1 near Roodepoort on 28 February 2021. Picture: Michel Bega
Transport Minister Fikile Mbalula says a decision on the Gauteng Freeway Improvement Project (GFIP) could be announced soon.
During a media briefing on Thursday, Mbalula indicated that Finance Minister Enoch Godongwana is expected to make an announcement on the future of e-tolls during the Medium-Term Budget Policy Statement (MTBPS), which usually takes place in October.
“Between myself and the Minister of Finance, directed by the President of the Republic, is that this matter must come to Cabinet before MTBPS.
“[The announcement] will happen when the Minister delivers the statement or before then. We are working on the matter,” the minister said.
ALSO READ: Fate of e-tolls on the table, but yet to be approved – Mbalula
Mbalula acknowledged that he had made “a lot of promises and concessions” regarding e-tolls when he was “almost certain” that a decision would be delivered.
“That is now last year when Tito Mboweni still Minister of Finance and now it’s Mr Godongwana so this on is for sure certain we even agreed last week. Our teams are working on the issues that need to be worked on before we make a final decision,” he said.
The minister had promised in mid-May that a decision on e-tolls was imminent as government hoped to finalise the matter before June.
Before that, he said Godongwana would make a pronouncement on e-tolls during his Budget Speech in February.
Fuel levy
The minister also revealed that government had planned to raise the money to replace e-tolls through the general fuel levy, but decided against this.
“There was a decision that was taken by Cabinet on the e-tolls which was taking us in the direction of the fuel levy. The fuel levy story has become very messy over time and is no longer an option we can consider. Fuel prices has gone up, the conflict in Russia and Ukraine has just exacerbated our situation,” Mbalula said.
READ MORE: Here’s what’s driving the surge in SA’s fuel price
“So we are not taking that route [but] we are looking at various options in terms of e-tolls, which we will finalise before the MTBPS of government. That will be around October. That’s where we are on e-tolls,” he added.
The general fuel levy was reduced from at R3.85 to R2.35 per litre after government cut it down by R1.50 initially for two months between 6 April and 31 May.
Due to petrol price hikes, government responded by extending the temporary reduction 1 June until 6 July.
The second reprieve of 75c per litre will be implemented from 7 July until 2 August.
Meanwhile, the Automobile Association (AA) and Organisation Undoing Tax Abuse (Outa) has maintained that it was of the view that the e-tolls system, in its present form, would continue to fail as most motorists have taken a principled stand against making e-toll payments.
Mbalula previously said, in November 2021, that Cabinet had finally decided to end the scheme.
He, however, pointed out that the National Treasury stopped the implementation of the decision.
NOW READ: Treasury still undecided on scrapping, as e-toll price hikes come into effect
