Hefty driving licence renewal costs, the highest in the country, are just one way the KZN government is topping up this year’s R13.5-billion budget shortfall.
Drivers in the province are now paying R250 to renew their driving licences, while those in the Western Cape will pay just R140. And, if the licence is paid after expiry, KZN drivers will pay R340 while in the Western Cape it’s R185.
According to the government services website, the next most expensive province for driving licence renewal fees is Gauteng at R228 followed by the North West at R222.
Provincial Treasury representative Ntokoso Mphisa said the money was used to top up the KZN budget shortfall.
“It’s all included in the budget. The money from the renewal of licences, traffic fines and hospital administration fees, and all those types of monies, are added into the budget,” he said.
“We got about R70bn from the national (Treasury). We need R83.5bn. It’s the money we collect ourselves here in the province. It becomes part of the budget given to the different departments.”
Formula
Mphisa said the Treasury worked on the budget over the year and when the shortfall was calculated, a formula was used to estimate how much levies – such as renewal fees and government administrative costs to the public – would be.
Gary Ronald from the AA said: “It’s the same as toll fees. If there are major capex projections and they (the provincial government) need extra… they get it from there,” he said.
The CEO of the Durban Chamber of Business, Andrew Layman, said, however, the public should not get hot under the collar about it. “As aggravating as this may be, the province needs the money to deliver on its socio-economic responsibilities.
“It is true that if spending was not so wasteful we wouldn’t have to pay so much, but most of the money that comes from the national government is used for salaries and welfare grants.”
Tax specialist for Deloitte Mark Freer said the public was increasingly paying hidden taxes, such as the driving licence renewal fee, to bolster government spending.
“We are slowly paying more and more, these hidden taxes are creeping up and up,” Freer said.
The Eastern Cape pays R216, the Free State R186, Limpopo R216, Mpumalanga R 170 and the Northern Cape R120.
