Tax And Governance Essay

3904 words - 16 pages

Tax and Governance

Contents 1. Introduction - The motorist’s contribution to revenue 2. Fees and taxes paid by motorists 2.1 Revenue from motor vehicle license fees 2.2 Revenue from the fuel levy (fuel tax) 2.3 Revenue from Toll Fees 2.4 Revenue from Traffic fines 2.5 Revenue from CO2 tax 3. e-Toll (The recent Gauteng e-Toll topic) 3.1 Summary of the Gauteng Freeway Improvement Project (GFIP) 3.3.1 Quality of Life 3.3.2 Productivity 3.3.3 Development potential 3.3.4 Direct cost of travel 3.3.5 Environmental Impact Assessment (EIA) 3.3.6 Monitoring and Communication infrastructure improvement 3.3.7 Soccer World Cup 2010 influence on the GFIP 3.3.8 User-pay principle (e-Tolling) 3.3.9 ...view middle of the document...

This contributes to the gross annual income of the country. According to the Road Traffic Monitoring Corporation (RTMC), as of December 2010, there are 9 829 400 registered vehicles on the South Africa roads. This increase by 2,52 per cent from December 2009, with significant contributions of increase in the motorcar and bus categories and a notably decrease in the number of motorcycles. The highest percent of motor vehicles are in Gauteng and Western Cape Province respectively. Attached are the data table and graph illustrating the percentage distribution for reference, (Road Traffic Management Corporation, 2010)

2.2 Revenue from the fuel levy (fuel tax) The South African Petroleum Industry Association (SAPIA) is a body representing the collective interests of the of the South African petroleum industry. As stated by SAPIA, “The Association helps to address issues regarding refining, distribution and marketing of petroleum products. Also, promotes the industry’s environmental and socio-economic progress,” (SAPIA, 2007). “The fuel price in SA is based on a formula controlled by the Department of Energy,” says Avhapfani Tshifularo, Executive director of SAPIA, (SAPIA, 2007). According to Avhaphani, “Over 80 per cent of the price of fuel in SA is currently made up of government levies and taxes (29 per cent) and the Basic Fuel Price (BFP) 55 per cent. The BFP is based on the current prices quoted daily by the international markets. The remaining components, transportation costs, and industry margins make up the rest of the fuel price,” (SAPIA, 2007). Listed are all the levies and taxes included in the fuel price. Transportation and trading costs not included. 2.2.1 Equalization Fund "The Equalization fund levy is normally a fixed monetary levy, decided by the Minister of Minerals and Energy together with the Minister of Finance. The income from this levy is used mainly to equalize fuel prices. The levy is currently zero,” (APA, 2010). 2.2.2 Fuel Tax A tax levied on petrol and diesel fuels. The Minister of Finance decides the levy amount. 2.2.3 Customs Union Levy "A levy collected in terms of an agreement by the Southern African Customs Union,” (APA, 2010).

2.2.4 Road Accident Fund Levy "The Road Accident Fund levy is applicable on both petrol and diesel fuel. The Minister of Finance decides the amount of this levy. The income from this levy is used to compensate third party victims of motor vehicle accidents,” (APA, 2010). Road Accident Fund is approximately 80 cents/litre for both petrol and diesel fuels. 2.2.5 Demand Side Management Levy (DSML) "A DMSL is applicable on 95 unleaded petrol used in the inland area. This levy was incorporated into the price of 95 unleaded petrol in January 2006, when it was initially introduced into the market. Most vehicles in this market are not required to run on this type of petrol and the unnecessary use will result in "octane waste" with negative economic consequences. A DMSL is used to...

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