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Mountain Man
The City of Joburg has not budgeted for e-toll fees and it is highly likely this shortfall in its budget will be paid by residents through increased rates and taxes.
City of Joburg spokesman Gabu Tugwana said the council operates 3 500 vehicles across its various departments, which are managed through a fleet management contract. A further 500 vehicles are also owned by the city through a different process.
This means the city could accumulate just under R2 million a month in toll fees at the capped fee of R550 a month.
Tugwana said that because the city’s budget was announced in May – “a month before the end of its financial year in June – the city has therefore not budgeted for the toll fees this year”.
E-tolling on 205km of Gauteng’s highways will commence on April 30.
Government legislation implies that any budget shortfalls for the city are made up through increases in rates bills.
Lee Cahill, from the Joburg Advocacy Group, said they had been concerned for a long time with the city’s draft rates policy, which says rates are a tax.
However, instead of setting set rates increases, they are determined by “quite broad rules”, including if the council has any budget shortfalls.
Rest of story here http://www.iol.co.za/motoring/industry-news/e-tolls-john-jane-public-will-pay-1.1256849
City of Joburg spokesman Gabu Tugwana said the council operates 3 500 vehicles across its various departments, which are managed through a fleet management contract. A further 500 vehicles are also owned by the city through a different process.
This means the city could accumulate just under R2 million a month in toll fees at the capped fee of R550 a month.
Tugwana said that because the city’s budget was announced in May – “a month before the end of its financial year in June – the city has therefore not budgeted for the toll fees this year”.
E-tolling on 205km of Gauteng’s highways will commence on April 30.
Government legislation implies that any budget shortfalls for the city are made up through increases in rates bills.
Lee Cahill, from the Joburg Advocacy Group, said they had been concerned for a long time with the city’s draft rates policy, which says rates are a tax.
However, instead of setting set rates increases, they are determined by “quite broad rules”, including if the council has any budget shortfalls.
Rest of story here http://www.iol.co.za/motoring/industry-news/e-tolls-john-jane-public-will-pay-1.1256849