Price pain for South Africans wanting to renew their vehicle licence in the Western Cape

The Western Cape Government (WCG) has proposed increasing vehicle licencing fees by around 4.5% in 2025, and has invited residents to provide feedback on the proposed increases. 

These proposals by the provincial government were published in the Provincial Gazette Extraordinary 9057 on 17 April 2025.

In the Western Cape, licensing fees are expected to increase between 3.9% and 4.8%. For example, a car weighing between 750kg and 1,000kg has increased from R390 to R408 annually for a licence disc.

This means the annual cost for a small hatchback is expected to be R408, while a large SUV like a Toyota Land Cruiser will cost R1,524.

Despite the proposed increase, the Western Cape would still be the cheapest out of the three major metros for renewals, which include Gauteng and Durban. 

Motorists across South Africa, including the Western Cape, are subject to a 21-day grace period for renewing expired licences.

Beyond this, penalties accrue at 10% of the annual fee for each month overdue. This rule highlights the financial burden of delaying renewals, making timely payments essential.

This means, for example, a late renewal penalty of R40.80 per month if the licence lapses beyond the 21-day grace period for a hatchback in the Western Cape.

As the costs of licencing fees for vehicles and drivers increase in South Africa and driving centres continue to experience inefficiencies, the conversation around digital driver and vehicle licences has gained traction.

Road safety expert and Driving.co.za managing director Rob Handfield-Jones argues that South Africa should retire its physical licence cards and replace them with permanent, digital-only permits that never expire.

“Every driver has fingerprints, and every vehicle has a VIN. If SARS can collect tax with an app, surely traffic officers could police drivers with an app,” said Handfield-Jones.

Handfield-Jones added that the government would not consider an option that excluded a physical card because it would be a money-spinner for the state and possibly other vested interests.

“There is no technological or practical obstacle to digital licensing and enforcement,” he said.

“Rather, the problem is the Road Traffic Management Corporation’s refusal to give up the revenue streams that go with analogue document production.”

The proposed fee increases will take effect on 1 August 2025 and are open for public comment until Saturday, 17 May 2025.

The table below shows the price increases proposed for the Western Cape, depending on the relevant weight of the car.

Reasons for the proposed increase

“The Western Cape is home to over two million registered vehicles, and the condition of our roads is consistently rated among the best in the country,” the WCG said in a statement.

“This is largely due to the provincial government’s commitment to ringfencing MVL revenue to maintain, upgrade, and expand our road network.”  

According to the Western Cape Mobility Department, paying vehicle licence fees is not just a legal requirement, it is essential to keeping roads safe, efficient, and reliable for everyone. 

“These fees are directly reinvested into the Western Cape’s road infrastructure, helping to build and maintain the roads that connect our communities, support economic activity, and enable daily life,” the department explained. 

It added that added that MVL fees are primarily used to build, upgrade, and maintain the provincially owned road network. 

They also assist municipalities in maintaining their more strategic roads and ensure continued safe mobility for all road users, including residents, freight operators, tourists, and public transport passengers.

“The Western Cape’s road network is a vital provincial asset that supports commerce, tourism, service delivery and job creation,” the WCG said.

By ensuring that our roads remain in optimal condition, the province safeguards economic competitiveness and enhances quality of life.” 

Western Cape residents are encouraged to review the draft regulation and submit comments before the closing date.