The South African National Roads Agency (Sanral) has clarified its position on why it charges VAT for e-tolls, after a road user\u00a0queried the notion that the system was already a tax, much like the fuel levy.<\/p>\n
A reader on Fin24<\/a> said: “I have been reading that e-tolls is a tax. Then I saw a Sanral invoice, which included VAT.”<\/p>\n “That is the same as charging VAT on your rates and legally there is no such thing as a tax on tax.”<\/p>\n Responding to the readers concerns, Vusi Mona, GM: Communications at Sanral, said: “E-toll is not a tax, but a user charge. Sanral is a non-profit based organisation, an agency of the Department of Transport.”<\/p>\n Mona noted that the toll revenue is mainly applied to pay for road infrastructure upgrades and expansions which were completed in 2010\/11 and commenced in early 2008, as well as the repayment of the debt which was incurred to fund this enormous project.<\/p>\n “Toll infrastructure is an insignificant cost in relation to the road expenditure incurred, which is to the benefit of all its users,” he said.<\/p>\n The spokesperson said that during an evaluation process on the e-toll financial model by two independent auditing firms, “it was found that the e-toll financial model is a zero profit model”.<\/p>\n According to reports, however, government is paying as much R25 million a month to Electronic Tolling Collection (ETC) company, for “costs incurred” – including rent, rates and taxes.<\/p>\n ETC, the operator of the e-tolling system, is paid for services rendered as per their tendered rates, Mona said, adding that Sanral, and its operator are audited in order to ensure that all\u00a0procurements\u00a0and payments are done in accordance with the law.<\/p>\n ETC is a consortium comprised of South African company TMT Services and Supplies (TMT) and Austrian traffic company, Kapsch.<\/p>\n TMT only owns 35% of ETC \u2013 while Kapsch TrafficCom AG owns 25% of ETC, with Kapsch TrafficCom AB of Sweden owning the final 40% stake.<\/p>\n According to TMT\u2019s website, the company\u2019s shareholding is actually also majority-owned by Kapsch \u2013 through its wholly-owned subsidiary, KTC SA Holding, which holds a 56.8% share of the group.<\/p>\n In effect, Kapsch owns approximately 85% of ETC, through direct and indirect holdings.<\/p>\n Why e-tolls are ridiculous: economist<\/strong><\/a><\/p>\n E-tolls blamed for the rise in cloned plates<\/strong><\/a><\/p>\nMore on Sanral and e-tolls<\/h3>\n