How The Toll System Will Affect Your Bottom Line

Now that the road toll system is a given and scheduled to come into effect in February 2012, whether we like it or not, let’s give you the bad news on how it will affect your business.  According to analysts,

• the new toll system will be an administrative tax burden for companies and their employees.
• the e-tolling system will result in significantly higher transport, distribution and related services costs and will inflate producer and consumer prices.
• It will affect the cost of commuting for individuals adding to our tax burden.
• It will alter road-use patterns and potentially change the flow of economic activity.
• You may need to reconsider your employees’ existing travel allowances to make provision for the new toll fees.
• If your employees make use of company cars you may need to analyse the costs of the e-tolling and place a limit on travel expenses.
• there may be hidden tax implications of the new toll fees for both individuals and companies as employees travelling to and from work would not qualify for a tax deduction, but employees using the toll roads for business would qualify.
• Value added tax (VAT) also comes into play as, in principle, companies and individuals registered for VAT were entitled to claim the amount back on toll fees associated with their business.

Supplied by FASA - News Alert