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Western Cape motorists may feel pinch of vehicle licence fee hike
by Bekezela Phakathi, 18 February 2013, 17:27
http://www.bdlive.co.za/business/tr...ts-may-feel-pinch-of-vehicle-licence-fee-hike
THE Western Cape provincial government on Monday published draft regulations that could see moto vehicle licence fees in the province increase 5.3% on average.
In line with the proposed increases, drivers of sedan cars could pay as much as R456 in licence fees.
With motorists already under pressure following fuel hikes in recent years, these planned increases will hit vehicle owners in the province hard. The Western Cape’s licence fees have been among the highest in South Africa for some time, which has led to some vehicle owners opting to register their cars in other provinces.
Speaking at a press briefing on Monday, provincial transport MEC Robin Carlisle said the Western Cape had not increased its motor vehicle registration and licence fees since 2005. He said the proposed increases would affect more than 1.7-million vehicle owners.
"I have decided that, while it is not yet required by law, the proposed increase should be subject to a full public participation process," Mr Carlisle said.
He said between 2001 and 2005, the Western Cape increased its licence fees "dramatically" by an average of 10%, which led to the province having the highest licence fees across most classes of vehicles and trailers.
"By the 2006-07 financial year, motor vehicle registration and licence fees in the Western Cape province were on average 50% higher than that of other provinces," Mr Carlisle said.
"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 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," Mr Carlisle said.
He said the provincial government relied on vehicle licence fees to build, upgrade and maintain the provincially owned road network, to assist municipalities with funding the maintenance of their more strategic roads, and to continue reducing 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 eight provinces. Many of whose surfaced roads are now virtually unusable."
Automobile Association spokesman Gary Ronald said on Monday that it is usual for the provinces to increase licence fees in line with the consumer price index or close to that level.
"Usually they come into effect in April as do the increases to toll fees and the fuel levy. We are anticipating the cost of motoring to be significantly higher this year, and of course this applies to freight transport in particular," Mr Ronald said.
"The consumer is going to be faced with quite a daunting year as production costs through transport alone will push prices up," he said.
The draft regulations would be published in the Provincial Gazette for public comment for a period of four weeks. The closing date for comment is March 18.
by Bekezela Phakathi, 18 February 2013, 17:27
http://www.bdlive.co.za/business/tr...ts-may-feel-pinch-of-vehicle-licence-fee-hike
THE Western Cape provincial government on Monday published draft regulations that could see moto vehicle licence fees in the province increase 5.3% on average.
In line with the proposed increases, drivers of sedan cars could pay as much as R456 in licence fees.
With motorists already under pressure following fuel hikes in recent years, these planned increases will hit vehicle owners in the province hard. The Western Cape’s licence fees have been among the highest in South Africa for some time, which has led to some vehicle owners opting to register their cars in other provinces.
Speaking at a press briefing on Monday, provincial transport MEC Robin Carlisle said the Western Cape had not increased its motor vehicle registration and licence fees since 2005. He said the proposed increases would affect more than 1.7-million vehicle owners.
"I have decided that, while it is not yet required by law, the proposed increase should be subject to a full public participation process," Mr Carlisle said.
He said between 2001 and 2005, the Western Cape increased its licence fees "dramatically" by an average of 10%, which led to the province having the highest licence fees across most classes of vehicles and trailers.
"By the 2006-07 financial year, motor vehicle registration and licence fees in the Western Cape province were on average 50% higher than that of other provinces," Mr Carlisle said.
"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 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," Mr Carlisle said.
He said the provincial government relied on vehicle licence fees to build, upgrade and maintain the provincially owned road network, to assist municipalities with funding the maintenance of their more strategic roads, and to continue reducing 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 eight provinces. Many of whose surfaced roads are now virtually unusable."
Automobile Association spokesman Gary Ronald said on Monday that it is usual for the provinces to increase licence fees in line with the consumer price index or close to that level.
"Usually they come into effect in April as do the increases to toll fees and the fuel levy. We are anticipating the cost of motoring to be significantly higher this year, and of course this applies to freight transport in particular," Mr Ronald said.
"The consumer is going to be faced with quite a daunting year as production costs through transport alone will push prices up," he said.
The draft regulations would be published in the Provincial Gazette for public comment for a period of four weeks. The closing date for comment is March 18.
