Good news for the development of public transport and potholes in this year’s budget speech, with 1.5 billion going to provinces for road maintenance and a further R2.5 billion going to municipalities for public transport systems and infrastructure. “The question remains, will this be enough for the strain that will be put on Gauteng back roads if an agreeable tolling rate is not reached by June?” says the AA.
A 10 cent increase brings the fuel levy to a whopping R1.77 a litre on petrol and R1.62 a litre on diesel, with the Road Accident Fund levy going up 8 cents bringing this levy up to 80 cents a litre, still begging the question asked in a petition put forward by the AA this week on exactly what is happening to our fuel tax.
While understanding that the cost of fuel is a significant factor in not only the general economy of the country, it impacts directly on the affordability of mobility to the road user. The Automobile Association calls on government to ensure that the additional burden placed on the road user is spent in such a manner that the benefits of this tax be obvious to those that contribute within a very short period of time.
The onus remains on “future road users” to cover tolling costs? “It will be interesting to see if there are plans to use the fuel levy increase to bring these costs down,” says the AA.
It is the Automobile Association’s belief that a dedicated road fund be established or, at the very least, money collected through the fuel levy be ring-fenced for transport, road safety and transport infrastructure projects.
Other news affecting motorists was an increase of up to 25% ad valorem tax on vehicles above R900 000 – not good news if you’re looking to buy a Ferrari!
Automobile Association of South Africa (AA)
011 799 1126