Given the parlous state of the economy at the moment, Finance Minister Enoch Godongwana has an unenviable job setting out achievable goals in his medium-term budget policy statement tomorrow.
But one decision he cannot dodge – because the ANC has already been avoiding the harsh truth since 2013 – is what to do with the failed e-tolls system.
Organisation Undoing Tax Abuse (Outa) chief executive Wayne Duvenage believes the government has accepted the inevitable … that there needs to be another mechanism for funding the Gauteng Freeway Improvement Project.
That’s because e-tolls compliance stands at just 17.65%, and the scheme has run up R9.7 billion in uncollectable debt from motorists who have refused to pay.
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The government has offered up the absurd “user pays” principle to justify the tolls which are, effectively just another tax on some of the most heavily taxed people in the world.
Ironically, had the ANC imposed a Gauteng-only 30 cents per litre levy on fuel in 2013, the roads would have been paid off by now.
Instead, whatever happens, the debacle has entrenched our country’s nonpayment culture.
Whatever finance scheme is proposed, most people will still be unhappy. After all, we already paid for these roads with our taxes.
