The Minister of Transport, Barbara Creecy, and the Deputy Minister, Mkhuleko Hlengwa, have welcomed Cabinet’s decision to approve the closure of the Gauteng Freeway Improvement Project (GFIP), popularly known as e-tolls - a move that will bring much-needed relief and ease the financial burden on road users.
The approval for the South African National Roads Agency (SANRAL) to shut down e-tolls includes the close-out of GFIP historical e-toll debt and the resolution of all outstanding litigation matters.
“Government reiterates that the close-out of GFIP e-toll debt is intended to provide certainty, resolve historical debt matters and support a sustainable approach to the funding, maintenance and improvement of South Africa's national road network,” the Department of Transport said.
The Minister and Deputy Minister have described this decision as a long-awaited step towards closing the GFIP e-toll matter in an orderly and responsible manner.
Creecy and Hlengwa said the decision will bring much-needed relief and ease the financial burden on road users, who are currently hard-pressed by high fuel costs linked to ongoing geopolitical developments.
GFIP was implemented and operated by SANRAL in terms of the applicable tolling framework and approvals that were in place at the time.
The e-toll system was introduced as a funding mechanism for the upgraded Gauteng freeway network.
The approval follows government’s decision to close the GFIP e-toll scheme and the subsequent withdrawal of the GFIP toll declarations, which took effect on 11 April 2024.
Cabinet's approval confirms that the outstanding and unpaid historical GFIP e-toll debt owed by road users will be written off; SANRAL will not pursue any further collection of historical GFIP e-toll debt; and road users who lawfully paid e-tolls while the system was legally in force will not be refunded.
The no-refund position arises from the fact that the levies were lawful at the time they were paid, that is, before the toll declarations were withdrawn.
The write-off of outstanding debt gives effect to government’s decision to close the GFIP e-toll scheme and provide finality for road users, SANRAL and the fiscus.
“Government further emphasises that the user-pay principle remains an important part of South Africa's road infrastructure funding framework where it is broadly accepted by road users through negotiation and agreement, appropriately structured, legally sound and supported by clear policy certainty,” the department said. -SAnews.gov.za
