"The automotive industry would have preferred to see freeway improvement programmes being financed through an administratively more efficient and less costly fuel levy," Naamsa president David Powels said in a statement.

Naamsa, however, welcomed Finance Minister Pravin Gordhan's announcement that a special R5.8 billion appropriation would be paid to the SA National Roads Agency Limited to ease the toll burden in Gauteng.

Motorists would now pay 30 cents a kilometre, instead of 66 cents as originally proposed.

Naamsa had in general welcomed the Budget given the slower growth in the domestic economy and uncertain global economic outlook.

"The minister had tabled an appropriate and disciplined set of budget proposals intended to support growth, employment and poverty alleviation through targeted interventions," Powels said.

"Particularly noteworthy was the substantial expenditure earmarked for competitive enhancing capital infrastructure development focusing on projects in the energy, transport and logistics sectors."

The R9.5 billion in personal tax relief would have a positive impact on consumer sentiment and demand, which could in turn help vehicle sales.

However, Naamsa was concerned that the increase in capital gains taxes for individuals and companies was unexpected and could prove counterproductive in promoting investment.

The association endorsed the public sector infrastructure programme, support for industrial development and economic zones, the rollout of employment programmes and the investment in further education and skills, Powels said.

Of concern was the funding for the proposed national health insurance system.

"These matters required careful evaluation, including detailed impact assessment, so as not to prejudice future consumer demand and economic growth in South Africa," Powels said.

The Automobile Association agrees with this stance.

"We are convinced that despite the latest offering from government the cost to the consumer, as far as the Gauteng tolls are concerned, is going to hit home hard when commodity prices increase as well as transport costs," said spokesman Gary Ronald in a statement.

Gordhan announced a cap of R550 per month on Gauteng toll road users in his budget speech earlier.

But Ronald said that instead of the toll fees, a road fund should be established for transport, road safety and transport infrastructure projects.

Otherwise, a portion of funds derived from the fuel levy should be "ring-fenced" to be dedicated to these projects.

Ronald said it was important for road users, who bore the brunt of fuel levies and tolls, to see the benefits of additional investment in infrastructure "within a very short period of time".

Gordhan announced that taxes on fuel would rise to 28 cents per litre from April 1, eight cents of which would go to the Road Accident Fund.

He also said that the SA National Roads Agency Ltd would receive R5.75 billion to help cover debt relating to the Gauteng toll roads.