Proposed 3% average increase in motor vehicle licence fees

The Provincial Government gazette has published the draft regulation pertaining to motor vehicle licence (MVL) fee increases in the province. The draft regulation is still open for public comment until Friday, 8 February 2019.

We have continued to publish these draft regulations for comment to allow the more than 2 million vehicle owners in the Western Cape the opportunity to submit their comments. This year, the proposed fee increases amount to an average 3% for the Western Cape, a figure well below inflation.

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.

Continue to reduce the maintenance backlog, which has been decreased by over 16% over the last 7 years.

These fees, along with budgetary allocations, help keep the Province’s roads in a good condition and during the 2017/18 financial year 94,8% of vehicle kilometres travelled on surfaced roads were travelled on roads in fair or very good condition. A total of 7019 km of provincial roads are in a fair to very good condition.

During this period 63080 m2 of surfaced roads were upgraded, 915772 m2 of surfaced roads were rehabilitated, 45997 km of gravel roads were bladed and 22km of gravel roads were upgraded to surfaced roads. This is in addition to the construction or upgrading of 6 bridges and 76 culverts. Our roads are an asset with an approximate value of R68 billion and they are consumed, over time, by the close to 2 million vehicle owners in the Western Cape and other users

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.

The draft regulation has been published in the Provincial Gazette Extraordinary 8027 dated 9 January 2019 for public comment.

• View the draft regulation proposing the new motor vehicle registration and licence fees, as well as other information.

Any person or organisation wishing to comment on these draft regulations is requested to lodge such comments on or before Friday 8 February 2019—

(a) by posting it to:

The Head of Department
Attention: Mr SJ le Roux
Western Cape Department of Transport and Public Works
PO Box 2603
Cape Town
8000;

(b) by emailing it to:
Shaldon.LeRoux@westerncape.gov.za; or

(c) by faxing it to:
Fax number: 021 483 2357.