Provinces agree on licence fees

2009-02-24 13:38

Cape Town - The provinces have come to a "tacit agreement" to set their motor vehicle licence fees at the same level, Western Cape Finance MEC Garth Strachan said on Tuesday.

Speaking ahead of his presentation of the province's 2009 budget, he said the adjustments needed to bring this about would hopefully be concluded over the next three years.

He also said that the Western Cape - which has the highest licence fees in the country - would for the third year in succession not increase them.

The provincial coffers have been hard hit by motorists who license vehicles in other provinces where fees are cheaper.

In his budget speech, Strachan said this "cross-provincial licensing migration" happened especially with heavy vehicles operating in the province.

This affected the province's revenues and, as a consequence, funding for road maintenance.

Apart from the fact that it was illegal, it also placed a higher burden on "ordinary people" who did take out licences in the province.