Saudi Cabinet ratifies annual fee for issuance, renewal of vehicle driving license as per fuel efficiency

Custodian of Two Holy Mosques King Salman

Saudi Cabinet approved to set an annual fee for the issuance and renewal of vehicle driving licenses according to their fuel efficiency.

The decision included distributing the vehicles into two parts - the first being light vehicles made in 2016 and later, and the second being light vehicles made in 2015 and earlier and heavy vehicles.

The financial consideration ranges between SAR 50 and SAR 190 depending on their fuel efficiency, as follows:

The annual fee will be applied in two phases, as follows:

Phase 1: Starting from 2022, it will include new light vehicles manufactured in 2023, provided that the application is linked to completing the modernization of electronic systems of the concerned authorities.

Phase 2: Starting from 2023, it will include all vehicles, provided that the application is linked to the Saudi Energy Efficiency Center (SEEC), in coordination with the relevant authorities, ensuring the readiness of the infrastructure, and addressing the difficulties that might arise during the implementation of Phase 1.

The financial consideration is obtained through the General Department of Traffic (GDT), as it will be added to the value of issuing and renewing vehicle driving licenses, provided that the following are taken into account:

- Classify the amounts collected from vehicle owners, as follows:

1) Fees for issuing and renewing vehicle driving licenses as prescribed by law.

2) Financial consideration for energy efficiency.

3) The total value of issuing and renewing vehicle driving licenses includes issuance or renewal fees, and the financial consideration for energy efficiency.

- The financial consideration will be supplied to the state’s public treasury, and recorded as energy efficiency revenue.

In coordination with the National Information Center (NIC) and SEEC, the Ministry of Interior (GDT) will take necessary measures to enable the vehicle owner to view the financial consideration imposed on the vehicle for a sufficient period before starting the application.

The decision included approval of the vehicle owner's objection mechanism to the financial consideration imposed on the vehicle through technical data (fuel economy or engine capacity) within 60 days from the date of adding the fee to the vehicle. The Saudi Standards, Metrology and Quality Organization (SASO) will receive and process the request.

The state will bear all fees and fines - if any - related to non-compliance with renewing vehicle driving licenses, for vehicles over 15 years old and whose owner wishes to drop them from the traffic records, within one year from the decision date. The Ministry of Interior is currently coordinating with NIC to take the necessary measures to find an implementation mechanism for this.

The decision included that the Ministry of Human Resources and Social Development (HRSD), in coordination with the Ministry of Finance and SEEC, assign additional funds in the annual budget allocated to support social security programs for the categories eligible for these programs, in order to mitigate the economic and social impact of the decision.

It also included that SEEC, in coordination with the concerned authorities, will submit a report to the Supreme Court regarding the results of the decision implementation after three years from the approval date, including the economic and social effects, difficulties, and necessary recommendations.