Motorists Could Soon Pay Extra RAF Fee When Renewing Licence Discs

• South African motorists could soon pay an additional RAF contribution when renewing vehicle licence discs as the government looks at new ways to fund RAF
• Transport Minister Barbara Creecy confirmed that the Department of Transport is researching a new vehicle owner contribution system linked to licence renewals
• The proposed RAF funding model comes as the government raises concerns about rising liabilities, electric vehicles reducing fuel levy income, and future road accident costs

South African motorists may soon face another cost linked to owning a vehicle, with the government looking into adding a new Road Accident Fund contribution to vehicle licence renewals. According to Transport Minister Barbara Creecy, the Department of Transport is researching a new funding model for the RAF as concerns continue to grow over the fund’s long-term sustainability.

The proposed plan could require motorists to pay an additional contribution when purchasing or renewing their licence discs every year. The idea forms part of broader discussions around fixing the RAF’s financial crisis and reducing pressure on the country’s fuel levy system.

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Speaking in an interview with Moneyweb, Creecy explained that the current funding structure may not work forever, especially with the rise of electric vehicles in South Africa and around the world. At the moment, the RAF is mainly funded through levies added to petrol and diesel prices. However, electric vehicles do not contribute to that system in the same way, raising fears about future funding gaps.

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She confirmed that motorists may eventually have to pay something when you get your vehicle licence. The issue comes as the RAF continues to face enormous financial pressure. Reports presented to Parliament recently claimed the fund’s contingent liabilities are sitting above R500 billion. The situation could reportedly become even worse following recent court rulings involving compensation claims.

Government is also pushing ahead with plans to reintroduce the Road Accident Benefit Scheme Bill, often referred to as RABS. The proposed system would move South Africa toward a no fault compensation structure with standardised benefits for road accident victims.

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Democratic Alliance MP Patrick Atkinson reportedly argued that running multiple systems at once could become too expensive, although Creecy dismissed some of the estimates being discussed publicly. The minister also touched on the planned rollout of the Administrative Adjudication of Road Traffic Offences system, better known as Aarto. The government still aims to introduce the next phase in dozens of municipalities from 1 July 2026.

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Creecy said authorities are monitoring readiness closely and may move municipalities that are not prepared into later rollout phases. Another major proposal currently being discussed is stricter alcohol laws for motorists. The government is reportedly preparing amendments that would introduce a zero alcohol limit for drivers, meaning motorists would not legally be allowed to consume any alcohol before driving.

3 Other Briefly News stories about RAF

• The South African government is looking at charging electric vehicle owners a separate fee when buying or renewing their vehicle licence.
• The Supreme Court ruled that the Road Accident Fund (RAF) must compensate all road accident victims, including undocumented foreign nationals.
• The Minister of Transport, Barbara Creecy, announced the dissolution of the Road Accident Fund board.

Source: Briefly News