NATIONAL NEWS - The organisation undoing tax abuse (Outa) has issued a 65-page document explaining how e-tolls have failed and why scrapping the system was “long overdue”.

The government grappled with the future of the scheme “but, to date, appears not to take civil society’s input into account”, according to Outa CEO Wayne Duvenage.

“Government is currently deliberating on the future of the collapsed scheme after cabinet told the transport minister and the Gauteng premier to come up with a solution before the end of August.”

The organisation has called on the task team and the public to read its report.

“We believe it will assist them in deciding to pull the plug and work with society on the way forward.”

The report said Gauteng’s disastrous e-toll scheme was a good case study by universities on how government legitimacy was challenged by the introduction of an overpriced project implemented without good research or meaningful public engagement.

“Outa’s report lists funding alternatives, including the fuel levy and government grants.”

Duvange said the updated paper reflected on why and how the decision to introduce e-tolls to fund excessive bonds was grossly flawed.

“The most obvious factors resulting in the scheme’s failure were the poor research conducted, combined with environmental factors such as South Africa’s poor vehicle administration systems, inadequate postal services, poor regulatory environment and public resistance.

“Today, the Gauteng e-toll scheme limps along at around 20% compliance, falling well short of servicing the bonds, and has very little chance of revival.”

Earlier this year, President Cyril Ramaphosa established a task team to find a viable solution to e-tolls.

The team, led by transport minister Fikile Mbalula, has just two weeks to come up with a solution.

Source: Caxton publication, Alberton Record.