Vehicle licence transaction fees for 2018 increased by 71 percent

You might not have noticed, but from February 2018, an amount of R72 (an increase of R30) is going to be added to the renewal fees for all motor vehicle licenses. This comes in the form of the fee to be paid to the RTMC.

It might sound “small”, but it’s fair to say such a vast increase is not in line with inflation and The Justice Project South Africa has taken umbrage with the decision.

They have called on Transport Minister Joe Maswanganyi to justify or explain why this is the case.

What is the RMTC fee?

This is the fee that should be paid over to Aarto to keep track of your fines. It’s an additional fee on top of the licence fee.

So, what will the total be for renewing a vehicle licence in 2018?

It’s going to come to over R300 in total.

The current inflation rate is 4.8 percent and JPSA has taken issue with this steep increase at a result. That increase is almost 15 times more. The previous increase was only around 17 percent.

According to JPSA, RTMC managed raked in R453 143 790 in transaction fees in the 2016/17 financial year. That’s an increase of almost 8 percent, despite there being fewer transactions.

Anything else JPSA noted?

Yes, 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.

“The recent termination of the RTMC’s 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,” JPSA said.

“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.”