Proposed 5.3% Motor Vehicle Licence Fees Increase

Statement by Robin Carlisle, Minister of Transport and Public Works

On 18 February 2013, the Provincial Government Gazette will be publishing the draft regulations pertaining to Motor Vehicle Licence (MVL) fee increases in the province. Because this increase affects 1 706 663 vehicle owners I have decided that, whilst it is not yet required by law, the proposed increase should be subject to a full public participation process.

During the period 2001 to 2005/06, The Western Cape increased its licence fees dramatically by an average of 10% over five years, which led to this Province having the highest licence fees in most classes of vehicles and trailers in the country.

By the 2006/2007 financial year, motor vehicle registration and licence fees in the Western Cape Province were, on average, 50% higher than that of other provinces.

In addition to the burden on ordinary motorists, many truck owners registered their vehicles in adjoining Provinces where fees were lower, thus significantly reducing Western Cape revenues.

Accordingly, the Western Cape has not increased its motor vehicle registration and licence fees since 2005, while other provinces have increased theirs during the same period.

As a result our vehicles licence fees for sedans and light vehicles have come broadly into line with other provinces, while our heavy tare trucks and trailers are in many cases significantly lower than neighbouring provinces.

The proposed fee increases amount to an average 5.3% increase for the Western Cape, which is lower than the inflation rate of 5.7%.

Some examples of comparative licence fees if the increase were to be implemented:

The Western Cape Provincial Government relies on vehicle licence fees to:

• Build, upgrade and maintain the provincially-owned road network.
• Assist municipalities to fund the maintenance of their more strategic roads.
• To continue to reduce the maintenance backlog.

The Western Cape motorists get good value for their licence fees - 93% of all kilometres travelled by all vehicles in the province are on surfaced roads rated as "good to very good". This far exceeds the standards in the other 8 provinces, many of whose surfaced roads are now virtually unusable.

As per Section 8(4) of the Western Cape Provincial Road Traffic Administration Act, 2012 (Act 6 of 2012), the draft regulations will be published in the Provincial Gazette Extraordinary 7091 dated 18 February 2013 for public comment for a period of four weeks. The closing date for comment is 18 March 2013.

The draft regulations proposing the new proposed motor vehicle registration and licence fees, as well as other information is available on www.westerncape.gov.za/transport/pubs/regulations.

All comments can be submitted to:
Head of Department
Attention: Mr R Barreiro
Western Cape Government Transport and Public Works
PO Box 2603
Cape Town
8000
Email: Randal.Barreiro@westerncape.gov.za
Fax: (021) 483 7112