{"id":650803,"date":"2026-05-30T07:05:11","date_gmt":"2026-05-30T05:05:11","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=650803"},"modified":"2026-05-30T07:10:08","modified_gmt":"2026-05-30T05:10:08","slug":"new-tax-proposed-for-vehicle-licence-renewals-in-south-africa","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/motoring\/650803-new-tax-proposed-for-vehicle-licence-renewals-in-south-africa.html","title":{"rendered":"New tax proposed for vehicle licence renewals in South Africa"},"content":{"rendered":"\n

Transport minister Barbara Creecy said her department was considering an additional fee which would be charged when motorists renew their vehicle licence discs.<\/p>\n\n\n\n

The new fee would be implemented to support the Road Accident Fund (RAF) as electric vehicle (EV) adoption grows in South Africa.<\/p>\n\n\n\n

EV drivers in South Africa currently don’t contribute to the RAF as its revenue was generated by a levy charged on every litre of fuel sold at service stations in the country.<\/p>\n\n\n\n

As EV adoption increased, fuel sales and funding available to the RAF from the levy were expected to decline.<\/p>\n\n\n\n

Creecy’s proposal was for a transitional levy to ensure the RAF remained afloat as EV adoption grew. The RAF helps fund the losses in income that people suffer due to road accidents. <\/p>\n\n\n\n

However, the entity has been severely criticised over corruption and maladministration, leading to significant wastage of its revenue.<\/p>\n\n\n\n

Speaking to Cape Talk<\/a>, Automobile Association of South Africa CEO Bobby Ramagwede described the idea of the new fee on vehicle licence renewals as laughable.<\/p>\n\n\n\n

“It’s no secret. The RAF is embattled and maladministered. In fact, it collects more money than it disburses,” he said.<\/p>\n\n\n\n

“Surely, by fixing its efficiencies and its operations, there’d be no reason for us to be collecting a further fee.”<\/p>\n\n\n\n

Ramagwede said the argument that EVs reducing fuel levy revenue is a compelling enough reason to introduce a new licence renewal fee did not hold much water.<\/p>\n\n\n\n

“EV adoption is very slow. If one were to compare the rate of EV adoption versus the amount of money we’re haemorrhaging from the RAF, it’s abundantly clear that the issue is operational,” he said.<\/p>\n\n\n\n

Asked about the future of the RAF, Ramagwede said compulsory third-party insurance would fulfil the same purpose.<\/p>\n\n\n\n

“There are various other modalities that would probably lead back to the same point if we were to change it to compulsory third-party insurance,” he said.<\/p>\n\n\n\n

He said the question at hand was whether it would be more efficient to enforce compulsory third-party insurance or continue with the RAF.<\/p>\n\n\n\n

“We could still find ourselves in the same position if we centralised a third-party insurance,” Ramagwede stated.<\/p>\n\n\n\n

Department of Transport spokesperson Collen Msibi told MyBroadband that the minister, in her Budget Vote speech, indicated that the growing use of EVs would result in less fuel levy revenue for the RAF.<\/p>\n\n\n\n

“The department further clarified that, to address this, a gap analysis and business case are being finalised,” he said.<\/p>\n\n\n\n

He added that this would focus on policy and operational design, as well as the interface between the Road Accident Benefit Scheme (RABS) and third-party insurance.<\/p>\n\n\n\n

Moreover, he said it would focus on the applicable legal and regulatory framework, as well as financial, actuarial, and funding considerations.<\/p>\n\n\n\n

Alternative to replace the general fuel levy<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

EV drivers also do not contribute to the general fuel levy (GFL), although the government might find it challenging to impose an alternative to that tax on these motorists.<\/p>\n\n\n\n

The GFL has never been ringfenced for road maintenance, but instead goes into the larger tax pot disbursed by the national government to provincial governments for general expenditure.<\/p>\n\n\n\n

Therefore, the argument that petrol and diesel drivers contribute to road maintenance through the GFL is not necessarily true. <\/p>\n\n\n\n

The GFL has become the fourth-largest source of tax revenue, behind personal income tax, value-added tax, and corporate income tax.<\/p>\n\n\n\n

The expected drop in revenue due to more fuel-efficient and fuelless vehicles could have a devastating impact on funding for government projects.<\/p>\n\n\n\n

Imposing a particular tax or levy on energy used for EVs presents a major challenge. These cars can get power from a regular socket, just like any appliance, making their energy usage impossible to track.<\/p>\n\n\n\n

Driving.co.za managing director Rob Handfield-Jones previously proposed a per-kilometre fee to replace the GFL for all vehicles, which would be a fairer application of the user-pays principle.<\/p>\n\n\n\n

Drivers would then report their usage between annual licence disc renewals and pay the relevant charge based on the distance they covered in the preceding year.<\/p>\n\n\n\n

South Africa’s current annual vehicle licence fee is based on the car’s tare weight and the province of registration. <\/p>\n\n\n\n

Tare weight is the weight of a vehicle without passengers, but with fluids like oil, coolant, and 10 litres of fuel. The higher the tare weight, the higher the associated licence disc renewal fee. <\/p>\n\n\n\n

This is because heavier vehicles can cause greater road degradation, and the fees are intended to support road maintenance.<\/p>\n\n\n\n

Each South African province determines its licence disc renewal fees, which are then updated through notices published in the Government Gazette.<\/p>\n\n\n\n

Foresight Publications<\/a> has tracked various road and transport legislation for years, including motoring fees like toll gate charges and licence disc renewal fees, which are summarised in the tables below.<\/p>\n\n\n\n

\n\n\n\n

Gauteng, KwaZulu-Natal, the Eastern Cape, the Western Cape, and Limpopo<\/h2>\n\n\n\n
Vehicle tare<\/strong><\/td>Gauteng
(April 2025)<\/strong><\/td>		KwaZulu-Natal
(April 2020)<\/strong><\/td>		Eastern Cape
(June 2018)<\/strong><\/td>		Western Cape
(August 2025)<\/strong><\/td>		Limpopo
(April 2026)<\/strong><\/td><\/tr>
250\u2014500kg<\/td>R396<\/mark><\/strong><\/td>R312<\/td>R324<\/td>R372<\/td>R324<\/td><\/tr>
500\u2014750kg<\/td>R432<\/mark><\/strong><\/td>R384<\/td>R330<\/td>R378<\/td>R336<\/td><\/tr>
750\u20141,000kg<\/td>R456<\/td>R474<\/mark><\/strong><\/td>R378<\/td>R408<\/td>R426<\/td><\/tr>
1,000\u20141,250kg<\/td>R528<\/td>R534<\/mark><\/strong><\/td>R474<\/td>R480<\/td>R540<\/td><\/tr>
1,250\u20141,500kg<\/td>R732<\/mark><\/strong><\/td>R672<\/td>R594<\/td>R672<\/td>R610<\/td><\/tr>
1,500\u20141,750kg<\/td>R852<\/mark><\/strong><\/td>R810<\/td>R696<\/td>R738<\/td>R756<\/td><\/tr>
1,750\u20142,000kg<\/td>R1,104<\/mark><\/strong><\/td>R948<\/td>R768<\/td>R846<\/td>R930<\/td><\/tr>
2,000\u20142,250kg<\/td>R1,284<\/mark><\/strong><\/td>R1,134<\/td>R1,008<\/td>R1,152<\/td>R1,182<\/td><\/tr>
2,250\u20142,500kg<\/td>R1,536<\/mark><\/strong><\/td>R1,350<\/td>R1,212<\/td>R1,350<\/td>R1,236<\/td><\/tr>
2,500\u20142,750kg<\/td>R1,728<\/mark><\/strong><\/td>R1,566<\/td>R1,368<\/td>R1,512<\/td>R1,398<\/td><\/tr>
2,750\u20143,000kg<\/td>R1,956<\/mark><\/strong><\/td>R1,764<\/td>R1,404<\/td>R1,524<\/td>R1,710<\/td><\/tr>
3,000\u20143,250kg<\/td>R2,112<\/mark><\/strong><\/td>R1,986<\/mark><\/td>R1,746<\/td>R1,902<\/td>R1,872<\/td><\/tr>
3,250\u20143,500kg<\/td>R2,484<\/mark><\/strong><\/td>R2,250<\/td>R2,058<\/td>R2,148<\/td>R2,124<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Mpumalanga, Free State, North West, and the Northern Cape<\/h2>\n\n\n\n
Vehicle tare<\/strong><\/td>Mpumalanga
(April 2026)<\/strong><\/td>		Free State
(August 2025)<\/strong><\/td>		North West
(December 2024)<\/strong><\/td>		Northern Cape
(April 2025)<\/strong><\/td><\/tr>
250\u2014500kg<\/td>R360<\/td>R312<\/td>R294<\/td>R366<\/td><\/tr>
500\u2014750kg<\/td>R385<\/td>R324<\/td>R336<\/td>R390<\/td><\/tr>
750\u20141,000kg<\/td>R435<\/td>R450<\/td>R366<\/td>R402<\/td><\/tr>
1,000\u20141,250kg<\/td>R522<\/td>R462<\/td>R450<\/td>R486<\/td><\/tr>
1,250\u20141,500kg<\/td>R684<\/td>R606<\/td>R552<\/td>R630<\/td><\/tr>
1,500\u20141,750kg<\/td>R782<\/td>R636<\/td>R672<\/td>R780<\/td><\/tr>
1,750\u20142,000kg<\/td>R894<\/td>R798<\/td>R762<\/td>R852<\/td><\/tr>
2,000\u20142,250kg<\/td>R1,168<\/td>R864<\/td>R762<\/td>R1,092<\/td><\/tr>
2,250\u20142,500kg<\/td>R1,372<\/td>R1,164<\/td>R1,146<\/td>R1,314<\/td><\/tr>
2,500\u20142,750kg<\/td>R1,546<\/td>R1,176<\/td>R1,290<\/td>R1,488<\/td><\/tr>
2,750\u20143,000kg<\/td>R1,670<\/td>R1,422<\/td>R1,324<\/td>R1,536<\/td><\/tr>
3,000\u20143,250kg<\/td>R2,056<\/mark><\/td>R1,644<\/td>R1,662<\/td>R1,908<\/td><\/tr>
3,250\u20143,500kg<\/td>R2,366<\/td>R1,884<\/td>R1,908<\/td>R2,178<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

South Africa’s EV adoption could lead to a new licence disc renewal fee to support the Road Accident Fund, according to transport minister Barbara Creecy.<\/p>\n","protected":false},"author":341076,"featured_media":650807,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29366],"tags":[20813,26078,98509,104368,89556,21775,88534,31960,67290,93801,99412,92639,75070,34711],"class_list":["post-650803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-automobile-association-of-south-africa-aa","tag-barbara-creecy","tag-bobby-ramagwede","tag-cape-talk","tag-collen-msibi","tag-department-of-transport-dot","tag-driving-co-za","tag-electric-cars","tag-electric-vehicles-evs","tag-licence-disc-fees","tag-licence-disc-renewal","tag-raf-levy","tag-road-accident-fund-raf","tag-rob-handfield-jones"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650803"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=650803"}],"version-history":[{"count":9,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650803\/revisions"}],"predecessor-version":[{"id":651006,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650803\/revisions\/651006"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/650807"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=650803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=650803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=650803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}