Share

Treasury is hypocritical: Busa

Johannesburg - The National Treasury is hypocritical for saying it is not in favour of ring-fencing taxes when it has done so for certain infrastructure projects, Business Unity SA (Busa) said on Friday.

"Ring-fencing of taxes is one way which government can enforce accountability in government agencies," Busa economic policy executive director Kgatlaki Ngoasheng told the advisory panel on e-tolling in Gauteng and its socio-economic impact.

"The National Treasury, which often indicates that it is not in favour of ring-fencing taxes, has actually recently implemented this particular ring-fencing of taxes for infrastructure financing of Transnet... talk about hypocrisy."

Ngoasheng said Busa was in favour of funding the Gauteng Freeway Improvement Project (GFIP) through the fuel levy, which involved the ring-fencing of taxes, as opposed to e-tolling.

"We have been advocating for alternative funding to the e-toll model, largely because the general fuel levy widens the revenue net and guarantees compliance," he said.

Using the fuel levy would cause less "pain" in Gauteng because the pain would be spread out across the country.

"It is not mentioned that the revenue generated by Gauteng partly subsidises service delivery across the country, and yet when other provinces have to partake in ensuring that Gauteng thrives so that they too can thrive - it attracts criticism."

He said ring-fenced tax examples included the solar water geyser fund, which was taken from the electricity levy, and the portion of the fuel levy given to the Road Accident Fund.

Ngoasheng said Busa was also in favour of "shadow tolling" - which still involved the fuel levy, but not the ring-fencing of taxes.

"It is the same process, but only you don't dedicate it to the specific funding of a project. It probably could be collected and be part of the fiscus."

The panel, which is holding hearings in Midrand, is focusing on the implications and perceptions of financing the GFIP and e-tolls.

On Monday, the Gauteng provincial government announced the panel would embark on a month-long consultation process, starting on Wednesday, with organisations and individuals.

Organisations were invited to make submissions on the economic, social, and environmental impacts of the GFIP and e-tolls.

The panel was expected to report to premier David Makhura at the end of November.

Here are the latest news headlines regarding the fuel levy:

Fuel levy employs no one - Cosatu

Fuel levy better way to fund e-tolls - union

Fuel levy likely to replace e-tolls



We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.3%
Rand - Pound
23.95
-0.2%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
911.60
+1.6%
Palladium
1,012.97
+1.1%
Gold
2,216.03
+1.0%
Silver
24.89
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders