The government is considering introducing a vehicle linked fee to help fund the financially troubled Road Accident Fund as it reviews the organisation's long term funding model. Transport Minister Barbara Creecy says the proposal could see motorists pay a separate charge when renewing vehicle licences or registering vehicles, ensuring electric vehicle owners also contribute to the fund.
South African motorists could face a new financial burden as the government considers introducing a vehicle-linked fee to help fund the struggling Road Accident Fund (RAF).
Minister of Transport Barbara Creecy has said that the department is reviewing the RAF’s funding model, with a separate mandatory fee attached to annual vehicle licence renewals or initial registrations among the options being considered.
"The Department of Transport, in collaboration with the Road Accident Fund (RAF), has initiated a structured review of the RAF funding framework, guided by a formal business case. Once this process is completed, it will be communicated publicly," Creecy said.
The move comes as the government looks for a long-term solution to fund the RAF. The fund is currently supported mainly by a fuel levy on petrol and diesel. However, as more people switch to electric vehicles, which use roads but do not pay fuel levies, the government says a vehicle-based fee could ensure all road users contribute.
