Business Insider Edition

A new plan will increase a controversial vehicle-licensing ‘transaction fee’ by another 14% – after a 72% increase last year

Phillip de Wet , Business Insider SA
 Mar 08, 2019, 05:13 PM
  • The transport ministry wants to increase the "transaction fees" paid to the Road Traffic Management Corporation every time a vehicle is licensed by another 14%.
  • Transport minister Blade Nzimande on Friday published his intention to do so for public comment.
  • A 72% increase in the same fee last year drew howls of protest.

He intends to increase the "transaction fees" paid to state organ the Road Traffic Management Corporation (RTMC) every time a vehicle is licensed in South Africa by another 14%, transport minister Blade Nzimande announced by publication in the Government Gazette on Friday.

The date for the increase to come into effect has not yet been determined, and the proposal is now open to public comment for the next four weeks.

At the moment R72 goes to the RTMC every time a licence is renewed. That should be increased by R10, Nzimande said, the equivalent of around double the official rate of inflation.

See also: Cape Town homeowners hit by steep new municipal valuations - even Cyril Ramaphosa has been affected

That fee, an important funding mechanism for the RTMC, was stable for many years. But in 2018 it suddenly jumped by R30 per transaction, or 72%, leading to harsh objections and questions in Parliament.

At the time the transport department and RTMC said the fee should actually have been more than double to make up for increases never implemented in prior years, but that "this caring government deemed it prudent not to burden the public and not applied the increase retrospectively."

Each province sets its own vehicle licensing fees. The RTMC transaction fee is added on top of those, to fund its centralised work on traffic law enforcement.

After last year's increase in the fees became effective, the RTMC said it need the money to fund increases in the cost of the eNATIS system and a higher wage bill.

For more, go to Business Insider South Africa

Receive a single WhatsApp every morning with all our latest news: click here.

Also from Business Insider South Africa:

  • Indicators
  • JSE Indexes

Get the best of our site delivered to your inbox every day.

Sign Up