Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      MTN and Vodacom dwarf South Africa's listed tech sector

      MTN and Vodacom dwarf South Africa’s listed tech sector

      20 March 2026
      SA firm opens Africa's largest space hardware factory

      SA firm opens Africa’s largest space hardware factory

      20 March 2026
      OpenClaw fever grips China

      OpenClaw fever grips China

      20 March 2026
      OpenAI plans desktop 'super app'

      OpenAI plans desktop ‘super app’

      20 March 2026
      How a WhatsApp bundle exposed a fault line in SA mobile

      How a WhatsApp bundle exposed a fault line in SA mobile

      19 March 2026
    • World
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
      Samsung's trifold gamble ends in retreat

      Samsung’s trifold gamble ends in retreat

      17 March 2026
      Nvidia targets $1-trillion in AI chip sales as inference demand surges - Jensen Huang

      Nvidia targets $1-trillion in AI chip sales as inference demand surges

      17 March 2026
      Peter Thiel's secretive Rome conference draws Church attention

      Peter Thiel’s secretive Rome conference draws Church attention

      16 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
      TCS+ | Flipping the narrative on AI in the Global South - Josefin Rosén

      TCS+ | Flipping the narrative on AI in the Global South

      13 March 2026
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Cracks appear in government’s e-toll user-pays principle

    Cracks appear in government’s e-toll user-pays principle

    By Roy Cokayne27 September 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Outa’s Wayne Duvenage

    Government and some state-owned entities appear to be painting themselves into a corner on the user-pays principle, which government often uses to justify the e-tolls on the Gauteng Freeway Improvement Project (GFIP).

    Finance minister Enoch Godongwana reportedly cautioned earlier this month against forgiving road toll debt in a presentation that was delivered to an ANC meeting and seen by financial services media company Bloomberg.

    It said Godongwana told the meeting the government, among other things, will need R4.6-billion to forgive unpaid highway tolls in central Gauteng, adding that this “request has serious long-term consequences if the user-pays principle is rejected”.

    The household levy suggested by the SABC sends mixed messages about the user-pays principle

    Meanwhile, the SABC in a submission to public hearings by the department of communications & digital technologies last week repeated its suggestion of a household levy to help recover and stabilise its finances. In terms of this proposal, the household levy will be based on the possibility of access to SABC services, rather than actual usage of its services.

    Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenage said the household levy suggested by the SABC “sends mixed messages about the user-pays principle and sends a message of a very confused government that is clutching at straws where they can”.

    ‘Non-starter’

    Duvenage said only local government will ever be able to administer a household levy but the SABC is a national government issue. “So the whole household levy idea is a non-starter, it’s a farce and it’s not going to happen,” he said.

    He added that the user-pays principle is internationally accepted but only if it can be managed. When user-pays cannot be managed, governments have to find other mechanisms, he said.

    Duvenage said user-pays on electricity is easy, with users cut off if they do not pay, but if e-tolls and SABC television licence fees cannot be managed “they are dead in the water”.

    “It’s not about the principle, it’s about the applicability and the enforceability,” he said.

    They are already being taxed in three ways. Now they have to pay more because their taxes are being used to pay a private concessionaire

    Automobile Association (AA) spokesman Layton Beard said the user-pays principle is not applied to the Gautrain although people are paying fares to use the rapid rail system because Gautrain users are subsidised through the patronage guarantee to the Bombela Concession Company (BCC), the operator of the Gautrain, but road users are not subsidised.

    The Gautrain patronage guarantee is a subsidy to the BCC when its total revenue from the Gautrain users is below a contractually agreed amount.

    According to the latest Gautrain Management Agency (GMA) annual report, the patronage guarantee payment by the GMA increased to R1.97-billion in the year to end-March 2020 from R1.67-billion in the previous year.

    Strong opinions

    Beard said it is not appropriate to just look at the payment of e-tolls on GFIP and “just say yes or no” because there is a link between the taxes that people pay and the money that has already been used to subsidise the Gautrain.

    He said various ministers of finance have had very strong opinions about the GFIP and e-tolling but need to consider what consumers are already paying when they use their private vehicles on the roads.

    “They are paying to have those vehicles on the road in the form of licence disc fees, they are paying to have those vehicles on the road in terms of the taxes on the fuel that they use, they are paying to have those vehicles on the road through the taxes they pay through income tax.

    Finance minister Enoch Godongwana

    “They are already being taxed in three ways. Now they have to pay more because their taxes are being used to pay a private concessionaire and the GFIP itself is completely onerous on them. That is why they have decided not to pay and the compliance rate with e-tolls is so low,” he said.

    Transport minister Fikile Mbalula has on a number of occasions over the past 18 months said a final decision on the future of e-tolls on the GFIP is imminent but a decision has not yet been announced.

    President Cyril Ramaphosa in 2019 appointed Mbalula to head a task team to report on the options available for the future of e-tolls by August 2019.

    Mbalula said during his budget vote speech in May this year that he had presented nine possible solutions to the e-tolls impasse and confirmed the first of these options was “to scrap the e-tolls”.

    The current e-toll model is not sustainable, it does not work, and that an alternative solution needs to be found

    Beard said the AA has a lot of difficulty reconciling the different views on e-tolls because there are so many divergent opinions on it, even within government.

    This is a reference to Gauteng transport MEC Jacob Mamabolo stating during a radio interview in May 2021 that e-tolls are “being scrapped” and the ANC in Gauteng on several occasions stating that e-tolls on the GFIP must be scrapped.

    Beard said the AA believes the current e-toll model is not sustainable, it does not work, and that an alternative solution needs to be found.

    Duvenage said Godongwana’s comments, and specifically his reference to the R4.6-billion in outstanding e-toll debt, “signals a bit of a different approach to e-tolls if you read between the lines”.

    A farce

    “I think they (government and national treasury) are acknowledging that the GFIP bond and interest on that bond is going to have to be picked up by the state and they are going to try and get some of the outstanding e-toll money from users.”

    But Duvenage said the reality is that there is no way that roads agency Sanral can enforce the non-payment of e-tolls because it has stopped summonsing motorists for non-payment, enforcement orders are not being issued, and motorists are not being blacklisted or having their licences withheld for non-payment.

    He added that it will be a farce and the public “will see through it” if a decision on the future of e-tolls is made on the eve of the local government elections on 1 November, especially if the ANC claims it as “their victory” because they called for the scrapping of e-tolls.

    Cosatu in Gauteng warned in August that there will be dire consequences for the ANC in Gauteng if Mbalula does not make “an announcement favourable to our demands by the end of September”.

    It said the e-toll policy has failed, with motorists not paying even when Sanral offers them discounts.

    • This article was originally published by Moneyweb and is used by TechCentral with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    AA Automobile Association Enoch Godongwana Fikile Mbalula Layton Beard Outa Wayne Duvenage
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSouth African miners back shift from coal-fired power
    Next Article Cryptocurrency exchanges rush to cut ties with China

    Related Posts

    South Africa secures World Bank backing for grid overhaul

    South Africa secures World Bank backing for grid overhaul

    9 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Hold the doom: the case for a South African comeback

    26 February 2026
    Treasury moves to bring crypto under exchange-control rules

    Treasury moves to bring crypto under exchange-control rules

    25 February 2026
    Company News

    How South African executives can crack the AI ROI code

    20 March 2026
    Africa's first Nvidia RTX Pro GPU servers have landed

    Africa’s first Nvidia RTX Pro GPU servers have landed

    19 March 2026
    How Acer Africa is bridging the digital divide through local innovation

    How Acer Africa is bridging the digital divide through local innovation

    19 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    MTN and Vodacom dwarf South Africa's listed tech sector

    MTN and Vodacom dwarf South Africa’s listed tech sector

    20 March 2026
    SA firm opens Africa's largest space hardware factory

    SA firm opens Africa’s largest space hardware factory

    20 March 2026
    OpenClaw fever grips China

    OpenClaw fever grips China

    20 March 2026
    OpenAI plans desktop 'super app'

    OpenAI plans desktop ‘super app’

    20 March 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}