5. ‘Congestion Tax’
On Monday (5 March), the department of transport released a new ‘draft roads policy‘ which aims to fundamentally improve South Africa’s road systems – and mentions how funds can be raised to do so.
“New revenue streams that are being considered include an increase in both the fuel levy and vehicle license fees, tolling and other innovative funding measures,” the policy said.
“Policy proposals include a focus on improving the efficiencies in budget expenditure in the roads sector, and government support for the application of the user-pay principle (for example tolling, congestion charges, weight over distance charging, cross border levies etc.”