Gautrain’s R100 million tax ticket
Gauteng provincial taxpayers are paying R100 million a month to subsidise the running of the Gautrain as the number of passengers has dropped over the past two years.
The provincial grant, called a patronage guarantee, means the province subsides the difference between the income from passenger fees and what is actually spent running the train.
This will help cover operating and maintenance expenses and the private sector portion of the capital costs until the number of passengers is sufficient for fares to meet the operating costs. To reach this balance, the number of passengers using the Gautrain needs to increase.
The guaranteed amount has been raised from R821m in 2013 to R1.099 billion in 2015 to now almost R1.6 bn for the 2017/18 financial year.
Read the full story on: IOL.
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