''No e-tolls will be funded by a fuel levy hike'' - Mbalula
Transport Minister Fikile Mbalula has dismissed speculation about a possible increase in the fuel levy to fund Gauteng e-tolls as "alarmist" and "rumour-mongering."
He was responding to a statement issued by the Organization Undoing Tax Abuse (Outa), which expressed concern that Finance Minister Enoch Godongwana might use expected fuel price cuts in September as an excuse to raise the fuel levy. According to OUTA, this will be done to cover the Gauteng Freeway Improvement Project, which the e-toll system has failed to cover.
According to OUTA, the government may increase the fuel levy by 25 cents to 30 cents per litre to cover e-tolls. Due to the sharp drop in oil prices, the price of 95 unleaded gasoline could fall by around R2.60 per litre in the first week of September.
"It must be made categorically clear that the government has not made any pronouncement on the funding of the Gauteng Freeway Improvement Project." "We, therefore, appeal to all stakeholders to desist from rumour mongering that is intended to create anxiety among motorists," Mbalula stated on Wednesday.
"I have engaged with the AA and OUTA to discuss matters of mutual interest, and I remain committed to constructive dialogue that assists in resolving challenges."
Mbalula has been promising an announcement on e-tolls since assuming office in May 2019, despite several deadlines having passed. Mbalula stated in June that a solution would be announced in the medium-term budget policy statement in October, this time "for sure."
In response to Mbalula's latest statement, OUTA CEO Wayne Duvenage told Fin24 that the fuel levy has previously been mentioned as a possible solution to the e-tolls issue.
"The best time to raise the fuel levy-judging by past behaviour-is to take advantage of a drop in the petrol price. We hope this will not happen, but are right to raise our concerns, "Duvenage stated.
"These short decisions may provide the government with quick-fix short-term tax gains, but they have a detrimental impact on the country over the long term. Government should instead be looking at introducing greater efficiency into managing the country's affairs, as opposed to seeking ways to lean more heavily on its taxpayers. "
