Scrapping of e-tolls in Gauteng hangs in the balance as bill agreement stalls

JOHANNESBURG – The scrapping of the controversial e-toll system in Gauteng still hangs in the balance as an agreement to settle the hefty bill again stalled.

The government initially committed to absorbing the R47-billion debt, with the Treasury set to cover 70% and the Gauteng provincial government taking over the rest of the bill.

But a memorandum of agreement is yet to be finalised further delaying the switch off of the gantries in parts of the province.

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A memorandum of agreement was drawn up last year to help finalise the matter.

This included a proposal for a hybrid model to service the debt.

The gantries were initially meant to be switched off by December last year but that date was revised to some time early this year.

But a notice to switch off the user-pay system is yet to be gazetted.

CEO of the Organisation Undoing Tax Abuse Wayne Duvenage weighs in.

“People are still getting invoices, people are still paying, they’re confused, they don’t know if they’re going to get refunded. It’s another example of a mess, that government cannot implement its decisions,” said the CEO of the Organisation Undoing Tax Abuse (Outa) Wayne Duvenage.

While the Treasury said it set aside funds to cover its portion of the deal, it’s understood provincial government is still scrambling to raise close to R13 billion.