PROVINCIAL GOVERNMENTS should consider substantial increases in vehicle licence fees to fund road building and maintenance, Transport Minister Mac Maharaj said last week.
Licence fees are one of the few independent sources of revenue available to the provinces.
Government is already planning to increase reliance on toll roads to maintain the national road network. Provinces should in turn tax road users by doubling or even trebling licence fees to raise money for road building in underdeveloped areas.
Maharaj said it was a strategy employed in many overseas countries. SA needs at least R5bn to maintain its current road network. Maharaj has also expressed support for substantially increasing the fuel levy to pay for road building and maintenance.
