Sign our petition to say NO to the 71.43% increase in licence transaction fees

On 6 October 2017, Transport Minister, Joe Maswanganyi increased the vehicle licensing transaction fee payable to the RTMC by 71.43%, with effect from 1 February 2018.

This increases the transaction fee from R42.00 to R72.00 and applies to all vehicle licensing transactions, regardless of the actual licensing fee applicable to the vehicle itself.

What’s the big deal?

Although a R30 increase in the transaction fee is not a hugely significant sum of money, the percentage of the increase is. If similar percentage increases are applied over a period of five years, then you will be paying R1066.00 per transaction by 2023. The current inflation rate (as at August 2017) is 4.8% and therefore, this increase is almost fifteen times the current inflation rate.

Isn’t this just a proposed increase?

No – it is a prescribed (proclaimed) increase.

Doesn’t the Minister have to consult motorists first?

No. Regulation 3 of the Road Traffic Management Corporation Act, No 20 of 1999 prescribes that “The Minister may, by Notice in the Gazette, amend the transaction fees [set out in regulation 2] on an annual basis”. This means that the Minister of Transport is authorised to amend the transaction fees each year without consulting anyone.

What is the money collected from transaction fees used for?

The RTMC is funded by various revenue streams, including but not limited to the transaction fees due to it on vehicle licensing transactions. When this transaction fee was first introduced, its purported purpose was to help fund the development and provision of the National Traffic Information System – (NaTIS or eNaTIS) through a third party contractor. In 2016, the Constitutional Court set aside the unlawful extension of the contract with Tasima (Pty) Ltd which took place in 2010 and finally, in 2017, the control of eNaTIS was seized by the RTMC. In so doing, a significant cost saving in monies payable to the third party contractor was finally realised.

Just what the transaction fees are actually used for at this stage is unclear, since the RTMC Act does not prescribe that any of its revenue streams must be ring-fenced for a specified purpose beyond the RTMC’s general mandate but let’s not forget that, just like all State Owned Enterprises, the RTMC pays remuneration packages which make one’s eyes water to its employees, executives and board.

Can’t I just refuse to pay the transaction fee?

The transaction fee, just like the fuel levy, cannot be separated out of the total payable. If you don’t pay the total payable, all that will happen is a short-payment will be recorded and your vehicle will not be licensed.

What can motorists do about this?

Unilateral powers are bestowed upon the Minister of Transport, not just by the RTMC Act and its Regulations, but by all manner of road traffic law in South Africa. This has been interpreted to mean that the Minister of Transport may do as he or she wishes, but history has proven that any administrative decisions taken by official must be rational and may not be taken on an arbitrary basis. Motorists can and should demand that responsible decisions are taken and are based on sound reasoning.

Sign our petition now!

You can add your particulars to JPSA’s petition to the Minister of Transport to rescind his administrative decision and, if any increase in this fee is warranted, to bring it in line with the inflation rate as is determined by the Consumer Price Index (CPI).

Time is limited. The closing date for this petition is Sunday 7 January 2018.  Don’t wait! Act now!

Important note:

Please note that in order to ensure the legitimacy of signatures, you will be required to confirm your signature of this petition by email. This process is automated and we will not add you to any mailing list unless you ask us to keep you informed.

Petition wording

The wording of this petition is included below the section where you enter your particulars. Please read it carefully before clicking “sign now”. Your name, city and province will act as your digital signature when the petition is submitted to the Minister.

say NO to 71 percent increase in licence transaction fees

  

We, the undersigned, being owners of motor vehicles registered in the Republic of South Africa who are compelled in terms of the National Road Traffic Act and its Regulations to licence our motor vehicles and pay fees on an annual basis, hereby register our objection to the administrative decision taken by the Minister of Transport, the Honourable Mr MJ Maswanganyi, MP to increase the transaction fee payable to the Road Traffic Management Corporation on vehicle licensing transactions by 71.43%, with effect from 1 February 2018.

We hereby demand that the Minister rescinds his decision and, if any increase whatsoever in such transaction fee is considered to be warranted, that such increase be brought in line with the inflation rate determined by the CPI, and limits it to no more than a five percent (5%) increase.

[your signature]

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