RFA spells out benefits of fuel levy versus tolls

The Road Freight Association
has once again rejected the
toll road system in favour of a
fuel levy for maintaining and
developing the country’s roads.
The issue predictably took
centre stage at the association’s
recent AGM where
chairperson Frank Wagner told
delegates that toll roads would
result in motorists paying
11-17% higher fees.
Greg Volkwyn of 94.7
Highveld Stereo said a levy
would be far more affordable
and sustainable into the future.
“The road freight industry
has already said it is paying
through levies, through tolls,
through permit fees, licence
fees, and general taxes – and
the rate of payment seems to
be increasing although the
funds don’t seem to be going
where they should be,” argued
Volkwyn.
Marissa Moore, acting
chief director of the National
Treasury, agreed that a straight
government tax would be a
better solution and the most
efficient way to collect money
to fund roads.
However, she noted: “The
problem with the straight tax is
that the level of income in the
country is not able to fund the
level of infrastructure needed
by industry.
“This country can afford
R101s, but for main highways
we need to find a way to pay
for them. So what we are
saying is that a mileage-based
user fee is the most appropriate
way of collecting funds.”
Dawie Roodt, chief
economist at Efficient Group,
said that state expenditure
was moving away from
capital expenditure to social
expenditure.
“The best way to collect
funds for infrastructure
is through a toll system –
theoretically. However, our
taxes increase and we are
getting less in the way of
capital expenditure.”
He said ring-fencing had
been tried in other sectors, but
there hadn’t been the correct
amount in the pot for our
expenditure requirements.
“So my answer is: Yes
let’s use toll roads to fund
infrastructure but then we
need a tax reduction as well.”
However, he asked: “Who
is going to pay? HGVs and
operators will just end up
passing the high costs onto
their customers.”
RFA board member Garth
Bolton believes the collection
methodology is a major issue.
“On the toll roads on which
we travel we pay about 25c
per km for HGVs. We are now
expecting costs of R2 per km,
so that is eight times more. It
is extremely expensive,” he
said.
“The problem is the
collection methodology. We
believe that if infrastructure
funds were collected on a fuel
tax we would have almost no
increase in cost.
“Collection as we see it is
extremely inefficient.”