E-toll payments will be refunded: Lesufi

Gauteng Premier Panyaza Lesufi has stated that those who have paid their e-tolls throughout the years will be reimbursed.

The premier told 702 on Tuesday (3 January) that the choice on whether or not to compensate Gauteng motorists was one of the fundamental difficulties that led to the e-tolling system not being discontinued on December 31, 2022, as scheduled.

He stated that the complete abolition of e-tolls in Gauteng is a legal procedure that involves regulatory amendments through the publication of a gazette – however there have been discrepancies in the specifics between the national and provincial governments.

Among these contrasts are what to do with money owing by motorists on current bills, as well as what to do with motorists who have faithfully paid their e-tolls throughout the years.

While the social triumph over e-tolls has been established – the system will undoubtedly be phased out – all other specifics have financial and tax repercussions for the province that must be worked out, he added.

“We hope it is done within the next 14 days before the state of the province address,” Lesufi said.

The premier stated that 95% of the concerns around e-tolling had been resolved, with the government deciding to repay road users who had paid e-tolls.

The system has a compliance rate of 17%, so the number of users is small, but the return amount is R6.9 billion, according to Lesufi, which is not negligible.

“It’s clear we have to refund people. We will refund people who have paid. The outstanding debate is the manner in which they will be refunded,” the premier said.

Lesufi stated that the government is considering whether it will be a cash return or a refund that will credit road users so that they will not have to pay any other tolls or services until the money is paid up.

Many of the law-abiding road users are corporations and freight firms, as well as foreigners who prefer the ease of e-tolls to manual payments. He stated that a decision would be taken and publicised during the state of the province speech later this month.

Paying e-tolls

Despite an imminent reimbursement for compliant customers, Gauteng’s e-toll debt persists.

Lesufi stated that the province’s 30% commitment to pay down the debt amounts to roughly R12 billion and that this must be fulfilled. The province is presently negotiating favourable payback conditions, with the premier looking for a payment period of 20 years.

“This gives us some breathing room,” he explained. “In this way, we can raise revenue through a variety of mechanisms.”

While the means for raising income is being worked out, the premier hinted at some of the options available, including the use of current tax legislation. Among the alternatives are:

• Raising licence fees;
• Manual tolling on vehicles entering Gauteng – as it’s not only Gauteng drivers using Gauteng roads;
• A 3 cent per litre fuel increase in the province.

Nothing has been determined yet, according to Lesufi, but when a decision is made, the province administration will communicate widely with citizens.

“There are various mechanisms, but we don’t want to commit the same mistake as e-tolls of imposing a transaction without consulting. At the beginning of this year, now, we will be unleashing our consultative process with the people of Gauteng,” he said.

“No one is opposed to the payment of the debt, but the issue is the e-tolls. We will consult our residents.”