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State taking us for a ride - small business

Small businesses have accused the government of ignoring their views on e-tolls.

The SA Chamber of Commerce and Industry and Black Business Council (BBC) had both argued for the introduction of a fuel levy to fund the maintenance of roads.

However, the government revealed this week that there will be a cap of R225 a month for light vehicles compared to the R450 that was earlier charged. There will also be a cap of R1750 for medium and heavy vehicles, while heavy and large vehicles will pay R5000.

Chamber of Commerce and Industry CEO Peggy Drodskie said despite an improvement to the revenue collection system, its members were opposed to the system as they believed the collection method was not the best.

She said the chamber believed that the government should have introduced a six cents fuel levy that would have been ring-fenced to maintain all national roads.

"Our stance is that the more fuel you use the more you must pay for using the road because this means you're travelling a lot, including those with big cars that consume a lot of fuel," Drodskie said.

She said there were motorists who owed thousands of rands to the e-tolls system and it was going to be difficult to settle their bills, despite a discount of 60% on the debt.

BBC secretary-general Xolani Qubeka said the organisation was yet to formulate a formal response on the matter.

Big business, however, yesterday released a statement saying they welcomed the new system.

"Business Leadership South Africa (BLSA), the association of South Africa's largest corporations and major multinational companies, welcomes Deputy President Cyril Ramaphosa's announcement on the new e-tolls dispensation.

"BLSA is particularly pleased with a hybrid funding model that cements the user-pays principle while incorporating a contribution from the fiscus, which will alleviate the strain on middle and working class South Africans during tough economic conditions.

"BLSA believes the principle of funding infrastructure through a hybrid funding model incorporating fiscal facilitation is sensible and signals the importance of critical infrastructure," read the statement.

sibanyonim@sowetan.co.za

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