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JOHANNESBURG – Any increase in the fuel levy will probably not be used to help to pay for the installation of the Gauteng tolling system.
Deputy transport minister Jeremy Cronin explained: "Many of those objecting to e-tolling have argued that instead of tolls the fuel levy should be ring-fenced for road construction and maintenance and not go into the general fiscus."
LEVY NOT ENOUGH
Speaking at the Southern African Transport Conference in Pretoria he added: "The national treasury is opposed to ring-fencing tax revenue because it brings about inefficiencies in government spending over time as lack of transparency means spending agencies lose the accountability of the budget process for how effectively they apply the funds."
The amount allocated out of the budget for road infrastructure, he said, was more than the amount raised from the fuel levy.
"In the 2009/10 financial year, for instance, the amount that would have been available for road infrastructure from the fuel levy (had it been ring-fenced) was R22-billion whereas the actual amount allocated was R29.2-billion - a shortfall of R7.2-billion."
Cronin also questioned whether finance raised from the levy should only be invested in road infrastructure when other transport modes such as rail were also in need of money.
Deputy transport minister Jeremy Cronin explained: "Many of those objecting to e-tolling have argued that instead of tolls the fuel levy should be ring-fenced for road construction and maintenance and not go into the general fiscus."
LEVY NOT ENOUGH
Speaking at the Southern African Transport Conference in Pretoria he added: "The national treasury is opposed to ring-fencing tax revenue because it brings about inefficiencies in government spending over time as lack of transparency means spending agencies lose the accountability of the budget process for how effectively they apply the funds."
The amount allocated out of the budget for road infrastructure, he said, was more than the amount raised from the fuel levy.
"In the 2009/10 financial year, for instance, the amount that would have been available for road infrastructure from the fuel levy (had it been ring-fenced) was R22-billion whereas the actual amount allocated was R29.2-billion - a shortfall of R7.2-billion."
Cronin also questioned whether finance raised from the levy should only be invested in road infrastructure when other transport modes such as rail were also in need of money.
