What Will Be The New Fees, Procedure Of Issuance, And Extension Of Vehicle Registration?

  • The Saudi government has approved a new annual fee (against finance) for vehicle registration issuance and extension. The fee for each vehicle will be the same as the cost of petrol.  
  • The government will bear the fees and fines for not extending vehicle registration. This rule applies to vehicles that are more than 15 years old and whose owners want the Saudis to remove them from the traffic department’s records
  • In collaboration with relevant agencies, the Saudi Center for Energy Efficiency will submit a report to the House of Commons on the results of the implementation of the decision after three years from the date of its approval.

Annual Fees Of Issuance And Extension Of Vehicle Registration Increased In 2021:

According to newspaper 24 and Okaz, the Saudi cabinet has decided to hold an annual conference on the Saudi Center for Energy Efficiency proposal, including the issuance and extension of the vehicle registration fee for vehicles. The cabinet also approved a Saudi Center for Energy Efficiency proposal to eliminate the aging of light vehicles.

What Are The Steps To Implement The New Fees?

The Saudi Center for Energy Efficiency has set two steps for implementing the decision. The first phase will apply to vehicles with 2016 and later models. There are five categories.

  1. The Saudi Center for Energy Efficiency classifies light vehicles of 2015 and earlier models based on engine capacity in terms of finances. 
  2. The new competitors will determine the increase in vehicle registration and renewal fees in terms of vehicle classification.  

Who Will Pay The Annual Fee?

  • The following category of vehicles will pay the annual fees of issuance and expansion of vehicle registration
  • Light Vehicles From 2015 Abd Before
  • Light Vehicles From 2016
  • All Heavy Vehicles.
  • The opposite finance department will receive the Traffic. It will increase the fee for issuing and extending vehicle registration. 

Which Factor Can Increase The Fees?

  • The following issues will take into consideration in this regard.  
  • Vehicle owners will get charged according to the category of the vehicle.  
  • Fee for issuance and extension of vehicle registration of legally prescribed vehicles  
  • Compared to the financial cost of petrol   
  • Aggregate Fee for Issuance and Extension of Vehicle Registration (Financial concerning Renewal Fee and Petrol Expenditure)  
  • The amount will be deposited in the public treasury and will register in revenue from petrol performance.  

When Will This New Procedure And Fees Get Implement?

The decision of the opposing financier will get implemented in two stages in the following manner:  

  1. The first phase will take effect in 2022. Accordingly, new light vehicles to be built in 2023 will be taxed.
  2. The second phase will take effect in 2023. All vehicles will come under it, provided the Saudi Petrol Center cooperates with relevant agencies to ensure that the infrastructure is ready.

The Department will coordinate with the Traffic, the National Information Center, and the Saudi Center for Energy Efficiency to take the necessary steps to notify the owner of the financial status of the vehicle. 

Note: The government will bear the fees and fines for not extending vehicle registration. This rule applies to vehicles over 15 years old and whose owners want the Saudis to remove them from the traffic department’s records. It will be possible within one year from the date of issuance of this decision.  

The Ministry of Manpower and Social Welfare will work with the Ministry of Finance and the Saudi Center for Energy Efficiency to mitigate this decision’s economic and social impact. Allocate additional funds to the Ministry’s annual budget.

In collaboration with relevant agencies, the Saudi Center for Energy Efficiency will submit a report to the House of Commons on the results of the implementation of the decision after three years from the date of its approval.

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