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Gauteng e-Tolling – Economic Impact

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The potential impact on the greater Gauteng economy is estimated to cause an increase in the Consumer Price Index of between 1 and 1.2 percent. Freight and goods distribution in and around Johannesburg have to use the freeways - there are no viable alternatives - and that cost will be reflected on the store shelves.

For years now, many organisations, including the AA, have been calling for a return to a dedicated road fund or a ring fenced fuel levy.

Conservatively calculated, this raises between R25 and R30 billion per year - perhaps not entirely adequate to sort out all our roads in the country immediately, but at least it could be used to service the debt incurred on the GFIP to start with.

“The logic of using an existing tax (fuel levy) seems a rational solution to a looming problem that looks to have serious financial implications to the regional economy. If this was applied in Gauteng there would be no reason for the fuel levy not to be used on other major projects country wide for which the levy was initially intended”, said The Head of Public Affairs at the AA.

The fuel levy option is by far the cheaper option when it comes to funding roads. No third party involvement and still the user pays without attracting an additional cost of collection.

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