The Saudi authorities have approved a proposal from the Saudi Energy Efficiency Center (SEEC) to fix an annual fee that will be added to the value of issuing and renewing Vehicles Registration License (istimara) in accordance with the efficiency of fuel consumption.
Approval has also been accorded to SEEC's proposal to determine the maximum lifespan of light vehicles and the mechanism for the disposal of old vehicles.
The SEEC has classified vehicles into two categories as part of charging the annual fee: the first being light vehicles made in 2016 and later, and the second being light vehicles made in 2015 and earlier and heavy vehicles.
There are five levels of fuel economy classification in the first category. 1- They are zero annual fee for fuel economy of 16 or more kilometers per liter; SR50 for 15.99 -14 km/l; SR85 for 13.99 – 12 km/l; SR130 for 11.99-10 km/l; and SR190 for fuel economy of less than 10 km/l.
As for the second classification of light vehicles manufactured in 2015 and earlier and heavy vehicles; the annual financial amount for them will be according to engine capacity. There is no annual fee for engine capacity below 1.9; SR50 annual fee for 1.91 – 2.4; SR85 for 2.41 -3.2; SR130 for 3.21-4.5 and SR190 for higher than 4.5.
The annual fee will be in two phases: Phase 1; Starting from 2022, it will include new light vehicles manufactured for 2023; provided that the application 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 linked to the Saudi Energy Efficiency Center (SEEC), in coordination with the relevant authorities.
The annual financial fee will be obtained through the General Department of Traffic (GDT) so as to be added to the value of issuing and renewing vehicle driving licenses, considering the following matters.
The decision includes enabling the vehicle owner to view the value of the financial amount for energy efficiency imposed on his vehicle, and to approve the vehicle owner's objection to the amount.
The government will bear all fees and fines of Saudi vehicle owners, if any, related to non-compliance with the renewal of the vehicle's driving license that is more than 15 years old, in the event of its Saudi owner desires to drop it from the traffic records within one year of the issuance of the decision.
The decision affirmed that the Ministry of Human Resources and Social Development, in coordination with the Ministry of Finance and SEEC, allocate additional funds to support social security programs for groups entitled to these programs, to mitigate the economic and social impact resulting from approving the annual financial compensation added to the value of issuing and renewing driving licenses for vehicles.
The new government decision also specified that the SEEC, in coordination with the concerned authorities, shall submit a report regarding the consequences of applying an annual financial compensation declaration added to the value of issuing or renewing vehicle driving licenses after three years from the date of approval of the decision; including the effects of the application from the economic and social aspects.
The mechanism for vehicle owner's objection to the value of the financial compensation for energy efficiency; imposed on his vehicle can be through two steps.
The first is that the vehicle owner shall object to the technical data regarding fuel economy or engine capacity; on which the financial compensation is based within a maximum period of 60 days; from the date of adding the amount to the vehicle's account in the electronic platform for paying vehicle fees. This also comes before reviewing the objections by the Saudi Standards; Metrology and Quality Organization (SASO) on technical grounds apart from inspecting the vehicle if required.
In the event of any error happening in the technical data of the vehicle, SASO, in coordination with SEEC; the General Traffic Department and the National Information Center; shall also take what is necessary to change the technical data of the vehicle; and the value of the financial compensation prescribed in it. If this is not acceptable to the vehicle owner, he can also lodge a complaint with the Administrative Court.
In the second step, SEEC will form a technical team to find appropriate solutions; when there are objections with regard to application of objection mechanism. The SEEC will also carry out this in participation with SASO, Ministry of Commerce; Ministry of Interior through the General Traffic Department; the National Information Center; and the Zakat; Tax and Customs Authority.
