New payment deal for motorists owing thousands in South Africa’s richest province

Words: Betha Madhomu/African Insider

Motorists in Gauteng who owe more than R3,000 in outstanding motor vehicle licence penalties and arrears can now apply to settle their debts through monthly instalments, under a payment arrangement introduced by the Gauteng Department of Roads and Transport.

According to TopAuto, the arrangement allows qualifying individuals and businesses to pay off their outstanding balances over a maximum period of 10 months, instead of settling the full amount immediately.

Applicants are required to make a minimum deposit of 30% of their total outstanding debt and provide reliable contact details and supporting documentation.

The R3,000 threshold applies to combined penalties and arrears, excluding traffic infringements and the actual vehicle licensing fees.

Individuals applying must submit an original South African identity document or foreign identity document, or a Traffic Register Number. Passports will not be accepted. They must also provide original proof of address, such as a municipal, telephone or bank statement, dated within the previous three months.

Similar payment conditions 

Businesses are subject to similar payment conditions but must additionally provide company registration documents and identification documents for directors, or an authorisation letter allowing one director to enter into the arrangement on behalf of the company.

The initiative comes as Gauteng intensifies efforts to recover outstanding vehicle licensing revenue.

In a March report, IOL reported that the provincial government was establishing a debt collection unit to track motorists with unpaid licence fees.

Gauteng Finance MEC Lebogang Maile said the province had also appointed debt collectors to pursue outstanding amounts.

‘The Gauteng Legislature has finalised the appointment of the panel of debt collectors, whose primary role is to provide debt collection services to collect outstanding debt,’ Maile said.

Vehicle licence fees account for more than 60% of the Roads and Transport Department’s internally generated revenue, with collections increasing from R4.5 billion in the 2022/23 financial year to R4.9 billion in 2023/24, according to IOL.

Pressure on motorists 

Meanwhile, the payment arrangement comes amid concerns about the cost of vehicle ownership in the province.

The Citizen reported in October that the Motor Industry Staff Association (MISA) had called on the department to withdraw proposed increases to vehicle registration and licence disc renewal fees.

MISA operations CEO Martlé Keyter warned that additional costs would put further pressure on motorists.

‘Every one of these fees is presented as small and reasonable, but our members pay all of them, out of the same pay slip, in the same month,’  she said.

The department’s instalment arrangement therefore offers motorists with substantial outstanding debts an opportunity to regularise their accounts without having to pay the entire amount upfront.

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Source: TopAuto, IOL & The Citizen