Another Bill for SA Motorists? Government's New Vehicle Fee Proposal Sparks Public Anger

• South Africa's Department of Transport confirmed it is exploring a new annual fee tied to vehicle licences or registration to rescue the Road Accident Fund
• The RAF earns over R48 billion yearly from fuel levies, but the rise of electric vehicles is cutting into that income as EV drivers pay nothing into the fund
• The DA and trade unions rejected the proposed charge, saying the RAF's problems stem from mismanagement, not underfunding by motorists

SOUTH AFRICA - South African motorists could soon face a new annual charge on top of their existing vehicle licence fees, as the government looks for ways to rescue the Road Accident Fund from its growing financial troubles.

According to a report by Cape Argus, Transport Minister Barbra Creecy confirmed that her department is reviewing how the Road Accident Fund (RAF) is funded.Two options are being considered: linking a compulsory fee to the annual vehicle licence renewal process, or collecting it when a vehicle is first registered.

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Why the RAF is running short

The fund currently draws most of its income from a levy on petrol and diesel, bringing in more than R48 billion each year. The government's concern is that the rapid uptake of electric vehicles is slowly shrinking that revenue pool. Because EV owners purchase no fuel, they make no contribution to the RAF at all. A vehicle-based fee would pull every road user into the system, regardless of what powers their car.

Beyond the electric vehicle problem, the fund is already under pressure. Large numbers of road accident victims are reportedly still waiting on overdue compensation payouts, suggesting the RAF's difficulties run deeper than the shift to cleaner vehicles.

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Opposition and unions push back

The Democratic Alliance wasted no time rejecting the idea. The party argued that the RAF's financial woes are the result of poor governance and mismanagement, not a shortfall in contributions from ordinary South Africans. "South Africans should not be forced to foot the bill for the government's failures," the DA said.

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Trade unions echoed that frustration, warning that workers would carry the heaviest burden of any new charge. Union representatives called on the government to fix accountability and oversight within the RAF before asking motorists to pay more.

The proposed levy has not become law. The department's review is still ongoing, and no date for possible implementation has been announced.

Motoring expert call for governement overhaul of levies

Briefly News reported that a motoring industry expert called on the government to fundamentally overhaul fuel taxation in South Africa, arguing that both the General Fuel Levy (GFL) and the Road Accident Fund levy are failing motorists and the broader economy. He proposed scrapping the GFL entirely and replacing it with a kilometres-based tax applied to all vehicles, meaning motorists would contribute in proportion to how far they drive.

Source: Briefly News