Proposal to Increase Motor Vehicle Licence Fees by 3.4%
Statement by Robin Carlisle, Minister of Transport and Public Works
On Friday, 28 March 2014, 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 over 1, 7 million vehicle owners, I have decided once again that, whilst it is not yet required by law, the proposed increase should be subject to a full public participation process. Last year, following a similar process of full public participation, proposed increases of an average 5.3% were implemented across the province. This year, the proposed fee increases the amount to an average 3.4% increase for the Western Cape, which is lower than the inflation rate of 5.9%, recorded in February of 2014.
National treasury Regulation 7.3.1 requires that all fees that are not or cannot be fixed by any law and that relate to revenue accruing to the revenue fund must be reviewed annually and submitted to the Cabinet via the Provincial Treasury.
During the period 2001 to 2005/06, the Western Cape increased its licence fees dramatically by an average of 10% over 5 years, which led to this Province having the highest licence fees in most classes of vehicles and trailers in the country.
10 - 30%
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 had initially not increased its motor vehicle registration and licence fees since 2005, up until last year, while other provinces have increased theirs during the same period.
As a result our vehicle 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 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 7242 dated 28 March 2014 for public comment for a period of four weeks. The closing date for comment is Friday, 25 April 2014.
The draft regulations proposing the new motor vehicle registration and licence fees, as well as other information, will be available here.
All comments can be submitted to: