M.Comm. (Economics) / The Gauteng provincial government is currently exploring possible sources for raising revenue to finance the increasing demand in social services. In the current fiscal stance, the bulk of provincial government revenue is constituted of funds transferred from the national government in the form of equitable share to provinces. Thus, the main purpose of this study is to assess the overall impact of the increase in the motor vehicle license fees and tourism levy, as important sources of the Gauteng provincial government own sources of revenue, on economic activities in the Gauteng Province. The study uses the provincial Computable General Equilibrium (CGE) model to simulate an increase in motor vehicle license fees and tourism levy, and to determine how such increases in taxation will affect provincial socio-economic variables such as the gross domestic product (GDP), employment and household consumption expenditure. The findings of the study are that a 10% increase in motor vehicle license fees or tourism levy negatively affects the Gauteng GDP, employment and household consumption. Nonetheless, the effect on provincial government revenue is positive. Given the negative effect of such an increase in taxation on key socio-economic variables, the study suggests that an increase in taxation on motor vehicle license fees or tourism levy should not be considered as options for raising revenue for the Gauteng Province.

E-tolling was recently implemented on roads in Gauteng, South Africa. This gave rise to a great deal of protest by road users and a court battle between the South African National Roads Agency (SANRAL) and the Opposition to Urban Tolling Alliance, a body representing road users. The e-tolling system was criticised at various levels and on numerous grounds, some financial and others appearing to be emotional. This thesis attempted to analyse the various grounds for objection against the system, the main goal of the research being to analyse e-tolling in Gauteng to ascertain whether or not the introduction of e-tolling was justified or whether an alternative method of taxation to pay for the upgrading of Gauteng roads would have been more cost-effective. Secondary data in the form of documents from multiple sources was used in the analysis, including an Economic Impact Assessment that was one of the key inputs into the decision to introduce e-tolling. It was found that there are multiple problems plaguing the e-toll system and e-tolling is not the most cost-effective taxation method of paying for Gauteng roads. Using a fuel levy or general tax revenue available to the National Treasury were both found to be more cost-effective methods as they would have achieved the same result (repairing and upgrading specific Gauteng roads), at a cost of R20,0913 billion less than e-tolling. It was suggested that the best taxation method/s to pay for the roads would have been using a fuel levy and general tax revenue as the primary funding methods, with vehicle licensing fees and long distance toll roads as secondary methods to aid the primary methods.