Why toll the national roads?
To build roads costs billions of Rands. Tolling assists us in meeting the ever-increasing economic demands of our society and allows for the provision of much-needed infrastructure. The ‘user pay’ principle enables us to provide roads sooner than traditional tax-based revenues.
Why do I pay taxes and now also tolls?
When we pay taxes, these monies are used for the services which Government renders to all South Africans. Tolls, on the other hand, are only utilised for that portion of road that we use, in other words it is a user fee. (The user fee could, for instance, be compared to paying for the privilege of under-cover parking at malls.) Taxes are not used to fund toll roads and therefore individual tax obligations are actually reduced by toll roads.
What are my tolls used for?
The tolls collected are exclusively used to finance the building, upgrading and general maintenance of the road.
Why do we have to pay tolls on an existing road, which was initially paid for out of taxes?
Roads deteriorate over time due to environmental and other influences, such as weather, ultraviolet radiation, overloading, etc. Tolls are not levied on the current asset/road (which is a ‘sunk’ cost), but on the new works and future improvements, including operations and maintenance. Monies derived from taxes are used on other non-toll roads.
What are the benefits of toll roads?
Toll roads ensure a high quality road network. In addition to contributing to improved road safety, toll roads generally reduce travelling distances and result in substantial savings on the running costs of your vehicle.
Should you have any other queries regarding toll roads, please do not hesitate to contact us.