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No e-toll payment, no licence renewal: government

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 20 May 2015
E-tolls are here to stay, and now motorists have no choice but to pay up, or forego their vehicle licence.
E-tolls are here to stay, and now motorists have no choice but to pay up, or forego their vehicle licence.

E-toll road users will not be able to renew their vehicle licences until the money they owe for using Gauteng's highways up until now has been paid off, at a discounted rate of up to 60%.

This is according to deputy president Cyril Ramaphosa, who today outlined the province's "new e-tolls dispensation" - including, as expected, lower tariffs and a new, lower maximum cap.

The announcement, which included significant discounts on previous e-toll tariffs and up to 50% lower monthly caps for all motor vehicles, was met with vehement opposition from motorists, who took to social media platforms to vent.

Many feel government is "forcing" e-tolls on motorists by holding the threat of not being able to renew vehicle licences over them.

Ramaphosa says the new terms and tariffs are the result of extensive public consultation, deliberations within government and approval by Cabinet - and "show [that] we are a caring, listening and responsible government".

The deputy president announced the decision this afternoon, from the Government Communication and Information System (GCIS) media centre in Cape Town - almost a year after a review into e-tolls was initiated.

In June last year, Gauteng premier David Makhura gave many motorists hope that government's e-toll system would be scrapped when he instigated a review to evaluate the economic impact of the system. The review panel found e-tolls was "unaffordable and inequitable" in its current form and recommended a hybrid funding model be adopted.

Ramaphosa said today the panel found the implementation of Gauteng electronic tolling had hugely benefited the economy as well as the people of Gauteng, giving motorists a better road system that reduced travel time.

Funding model

Outlining the pricing changes, Ramaphosa said a hybrid model will be put in place, with reduced tariffs and monthly contributions from both national government and the Gauteng provincial government funding the system.

Due to the reductions introduced, there would be a funding shortfall of R390 million, he added.

A single reduced tariff will be applied to all motorists. Class A1 (motorcycles) will pay 18c per km, Class A2 (light vehicles) 30c per km, Class B (medium heavy vehicles) 75c per km, and Class C (large heavy vehicles) will now pay 150c per km.

Monthly caps have been reduced by 17% to 50%, with Class A1 vehicles' cap at R125 (from R280), A2 at R225 (from R450), B at R875 (from R1 750), and C at R2 900 (from R3 500).

Addressing the issue of incorrect billing and onerous payment means, Ramaphosa said the new dispensation would include the integration of existing information systems, which would improve the accuracy of information between agencies and make it easier to pay e-toll fees. In addition to online payments, the agencies include the SA Post Office, provincial licensing offices, vehicle dealerships and retailers.

Although all motorists will be regarded as registered - whether they have purchased an e-tag or not - Ramaphosa made the distinction between "direct registration" and "indirect registration". In the latter case, road users will pay more "admin fees".

He said the reduction in tariffs and new cap would be implemented in two to three months' time, while "the rest of the changes" will happen in phases and will be dependent on the related legal processes. "An announcement [with regard to the other changes] will be made shortly."

E-toll road users will be given six months within which to pay their e-toll fees dating back to December 2013. The said 60% discount will apply and Ramaphosa says users who have been paying e-tolls all along "will not be disadvantaged".

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