Sanral’s toll collection fee ‘very high’

Gauteng continues to pay the bulk of taxes in the country and can ill afford the planned tolls in the province, according to economists interviewed by FTW. Renowned economist Mike Schüssler said while it remained difficult to measure the exact impact of the tolls prior to their implementation later this year, they were expected to hit consumers’ pockets hard. “Gauteng consumers already pay 52% of all South Africa’s taxes. With the implementation of the toll system they are going to be paying even more,” he said. “The exact impact of the tolls will only be picked up after implementation as they have not been part of the CPI basket that we have been measuring. Having said that they will obviously increase the cost of commuting in Gauteng and all indications are that lower-priced goods like bread and milk are going to see the biggest price increase.” He said effectively the research was showing that the residents in the province, while it was the biggest economically speaking, were going to be paying more than any other province’s residents. “Tax collection is very ineffective on a toll road system as well and if our calculations are correct Sanral is looking at a 16% collection fee. That is very high,” said Schüssler, “especially if one takes into consideration that Sars’ collection fee is only 1%.” Sarah Truen, an economist with DNA Economics, agreed with Schüssler, saying that as one was drastically increasing the cost of the only mode of transport in the province, the tolls were going to have a dramatic impact. “Essentially what is happening is the systematic increase in costs without any functioning alternatives.” Whilst the government has come under severe criticism for the R20-billion debt it has incurred with the Gauteng Freeway Improvement Project, there is no other way forward but to implement a user-pay principle, the deputy minister of Transport, Jeremy Cronin said. But, said Schüssler, if the government wants to implement a user-pay principle it should do so across the board and not just on transport.