SA motorists could soon pay extra fees when renewing licence discs
· The South African
South African motorists could soon face an additional charge when buying or renewing their vehicle licence discs as government looks for new ways to fund the financially strained Road Accident Fund (RAF).
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Transport Minister Barbara Creecy confirmed that the Department of Transport is investigating a vehicle owner contributory scheme that would require motorists to pay a separate amount linked to their vehicle licences.
The proposal forms part of broader plans to reform the RAF and reduce growing financial pressure on the state.
Why government wants to change the RAF system
Currently, the RAF is mainly funded through the fuel levy included in petrol and diesel prices.
However, Creecy said this model is becoming less sustainable, especially with the growing number of electric vehicles on South African roads. Since electric vehicles do not use fuel, they do not contribute to the RAF levy in the same way traditional vehicles do.
At the same time, the RAF’s financial liabilities continue to grow rapidly.
According to Moneyweb, the fund’s contingent liabilities were forecast to exceed R600 billion several years ago, and concerns remain over the long-term risk to government finances.
Drivers may pay more
While government has not finalised the model yet, Creecy confirmed that motorists would likely need to contribute financially when obtaining or renewing their vehicle licence discs.
“The planned scheme will involve a motorist paying something when you get your vehicle licence,” she said.
The Department of Transport is still studying how such a system would work, especially for public transport vehicles and lower-income motorists, where affordability remains a concern.
Creecy said government is still reviewing different funding options and economic models before making final decisions.