It may cost you much more than the usual to renew your motor vehicle licence as the Road Traffic Management Corporation (RTMC) announces an addition of R30 to the Licence fee starting from February 2018.
The RTMC announced this last week saying that the R72 new licence fee will from next year be paid to the corporation.
Transaction fees have not been adjusted since the 2011/12 financial year when they were revised from R36 to R42. Before that, the fees were adjusted by R6 annually.
According to the announcement by the Minister in Government Gazette, the fees are reasonable when account is taken of the fact that they were not adjusted from the previous five years.
The RTMC fee is usually paid over to Aarto to keep track of people fines. It’s an additional fee on top of the licence fee and with the new addition, the new fee will come to over R300 in total.
Meanwhile, the Justice Project of South Africa (JPSA) has reacted to the new licence increase, calling the RTMC to explain its reasons for the sudden R30 addition.
In a statement, the JPSA asked Minister Maswanganyi “to justify, or at the very least explain the whopping increase in transaction fees he has proclaimed, especially in light of the fact that the RTMC has consistently failed to achieve its mandate with respect to enhancing road safety and reducing the catastrophically high carnage which exists on South Africa’s roads.”
“The increase of R30 per transaction equates to a whopping 71.43% increase in this transaction fee, raising it from R42 per transaction to R72. In the previous year, the former Minister of Transport, Dipuo Peters increased this transaction fee from R36 to R42 per transaction, an increase of 16.67%,” it said, adding that the new increase is almost 15 times more. The previous increase was only around 17 percent.
“The current reported inflation rate in South Africa is 4.8% as at August 2017 and therefore, the latest published transaction fee exceeds the current inflation rate by almost fifteen times.”
The JPSA further argued that RTMC’s recent termination of its contract with Tasima, which contact was unlawfully renewed by former Minister S’bu Ndebele in 2010, should have had the effect of decreasing the input and maintenance costs of the eNaTIS vehicle and driver registry.
“Therefore, beyond increasing the outrageously high remuneration packages which are paid to RTMC executives and Board members, there appears to be no rational reason for the truly massive increase in transaction fees the Minister has proclaimed.”
The JPSA is also accusing the RTMC of racking R453 143 790 in transaction fees in the 2016/17 financial year and that the CEO of RTMC saw a salary increase of 31.6 percent, from R5 950 000 to R7 830 000 during the same period. Senior staff also got increases of almost 20 percent.