Everyone is angry about e-tolls – but the fuel levy is worse: expert

[BusinessTech]

Everyone is angry about e-tolls – but the fuel levy is worse: expert

The debate and upheaval around Gauteng's e-tolling system has created a culture of non-compliance, and has distracted from the very real need for ways to fund vital infrastructure in South Africa, says president of the South African Road Federation (SARF), Saied Solomons.

 

[3WA]

Build a wall across the N1 and make Pretoria pay for it.

 

[supersunbird]

Everyone is angry about e-tolls – but the fuel levy is worse: expert

The debate and upheaval around Gauteng's e-tolling system has created a culture of non-compliance, and has distracted from the very real need for ways to fund vital infrastructure in South Africa, says president of the South African Road Federation (SARF), Saied Solomons.

What is your just and equitable user pays method Saied Solomons? Ring-fenced fuel levy is at least more equitable and fair than the current e-toll system (I use some sections of the GFIP for free and SANRAL has no idea of the trips (so what does it help with congestion?), the gantries are 10km apart and there a few 5 to 8km stretches one can use for free).

With a ring-fenced fuel levy the GFIP Phase 1 construction cost could have been paid if within one year in 2014, and they'd have been left with over R25 billion to use for something else. By now they could have earned and spent another R200 billion (even more) on roads with a ring-fenced fuel levy.

 

[Ancalagon]

According to Solomons, with the fuel levy, the poor pay the same rate of tax as the rich – and those who can afford newer more fuel-efficient vehicles are paying less than poorer people driving older cars for the same distance travelled.

They have said stuff like this before, but the reality is that it is just nonsense to try sell us on the corrupt deal that is eTolls. Pure hot air and hogwash - lies.

First problem is that the poorest people do not own cars at all and use public transport to get around. Therefore, the portion of the fuel levy that they pay would be pretty small. In a taxi with 20 people, they would pay 1/20th of the taxi driver's fuel levy. Hardly anything.

Second problem is that the heaviest users of fuel in Gauteng are without a doubt the commercial vehicles, such as trucks and vans. They would therefore shoulder most of the burden as far as paying for the road users go.

Third problem is that a fuel levy is a lot more efficient than eTolls. Collection cost is MUCH lower, and 0% of the fuel levy is sent overseas to some other corporation. Compare that to eTolls, where the wastage is much higher because the collection cost is higher. This means that paying for the road upgrades with eTolls is more expensive - you need to collect a larger pool of money to pay for them, keeping in mind the fact that wastage is so much more. With that in mind, it is not impossible that a poor family driving an old car would pay more with eTolls than they would with a fuel levy - even if a fuel levy cost them more than say a rich family with a hybrid car.

 

[Gaz{M}]

Except that EVERY other non toll road in the country is paid for with "fuel levy". His argument was debunked years ago.

 

[ToxicBunny]

Yeah, just more FUD from entities that have some link to SANRAL...

 

[supersunbird]

Except that EVERY other non toll road in the country is paid for with "fuel levy". His argument was debunked years ago.

Paid from the fiscus, just for technical correctness.

 

[krycor]

Except that EVERY other non toll road in the country is paid for with "fuel levy". His argument was debunked years ago.

But that’s exactly the problem.. the pot is only so big. I have a suspicion that if there was greater adoption of eTolls, all future national road endeavors would be funded this way and fuel tax could lessened such that it funds only under service areas.

That’s besides the fact that every other toll road project is adopting this model in SA btw. Manned tolls are getting dropped down to a single exit in the near future.

I think people have a choice.. either the petrol price goes up (they will never ring fence it.. get over yourselves and see which countries with unequal societies do this, at best you can hope for a reduction or slowing of increase with adoption of user pay) or eTolls for National roads become more prevelant. That’s your only choice. Deal with it.

 

[Gaz{M}]

But that’s exactly the problem.. the pot is only so big. I have a suspicion that if there was greater adoption of eTolls, all future national road endeavors would be funded this way and fuel tax could lessened such that it funds only under service areas.

That’s besides the fact that every other toll road project is adopting this model in SA btw. Manned tolls are getting dropped down to a single exit in the near future.

I think people have a choice.. either the petrol price goes up (they will never ring fence it.. get over yourselves and see which countries with unequal societies do this, at best you can hope for a reduction or slowing of increase with adoption of user pay) or eTolls for National roads become more prevelant. That’s your only choice. Deal with it.

It's about ease of collection too. Collecting fuel levy is trivial. The oil companies write a cheque each month to the Government for litres sold. Zero collection cost.

With tolls, you need massive, complex infrastructure to collect. The cost of collection outweighs any "fairness" benefit. In the end, it is easier (like with VAT) to just charge everyone.

 

[Lupus]

It's about ease of collection too. Collecting fuel levy is trivial. The oil companies write a cheque each month to the Government for litres sold. Zero collection cost.

With tolls, you need massive, complex infrastructure to collect. The cost of collection outweighs any "fairness" benefit. In the end, it is easier (like with VAT) to just charge everyone.

Krycor seems to be another House, he only ever talks about how he's a good little boy and pays his e-tolls, because of this he expects everyone else to follow suit with this injustice.
Though the fuel levy is a better solution as it will cost everyone equally and also it's user based as guess what, generally the person filling the tank is going to use the car.