April is looking to be a challenging month for all car owners as new taxes such as the new fuel tax (additional R277 every time you fill up) and new vehicle license fees come into effect.
As for licensing fees, the minister announced a 14% increase in the transaction fees to be paid to the Road Traffic Management Corporation (RTMC). This is now the second increase in just over 1 year that we have had, the first was back in February of 2018, when the fee increased by a massive R30, from R42 to R72.
All local registering authorities (licensing centers etc.) have to pay a transaction fee for every vehicle it processes and this fee is being increased. Of course, the licensing centers won’t take that fee upon themselves and that’s how we have people in South Africa getting poorer and poorer. Make sure you aren't paying more for car insurance than you should be, check your premium and if you can be paying less in 3 minutes by comparing more than 9 providers online:
Gauteng, KZN and Western Cape governments reported a rise in motor vehicle license fees (MVL) for 2019. These fee increases will officially be enforced on 1 April 2019. The government has reported that this tax is used to improve road conditions. With all the government officials being paid excessive salaries who is to say that this increase isn’t going straight into their pockets?
The Western Cape government reported that it relies on these vehicle license fees to do the following:
Table reference: BusinessTech
It’s not only car license fees that are being increased but also trailer, caravan and motorcycle fees.
The actual license fee varies in each province, depending on the size of the vehicle. Gauteng drivers can expect to pay from R204 to R972 for license disc and around R204 for a motorcycle license.
People in the Western Cape will get it a little lighter, depending on what you drive, and you can expect to pay anything between R288 and R966 to renew the license, and motorcycle licenses will cost around R192.
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