New Gauteng unit to tackle millions in license debt

The Gauteng government is stepping up efforts to recover millions in unpaid vehicle licence fees with the creation of a new debt collection unit tasked with tracking motorists who owe the province. This move followsGauteng MEC for Finance and Economic Development, Lebogang Maile, emphasising the need for strict fiscal discipline during his budget speech to the provincial legislature on Tuesday, where he outlined measures to strengthen revenue collection and safeguard the province’s finances. Vehicle licence fees remain one of Gauteng’s largest sources of revenue, contributing more than 60% of internally generated income for the Department of Roads and Transport.

Revenue from vehicle licensing grew from R4.5 billion in 2022/23 to R4.9 billion in 2023/24, largely due to improved collection of licence renewal fees. The department collects this revenue through a network of agencies, including municipalities, the South African Post Office, the Road Traffic Management Corporation, and the Gautrain Management Agency, which are reimbursed from the funds they collect on the department’s behalf. Maile underscored the immediate challenge faced by the Gauteng Provincial Treasury, stating that transforming budget priorities into funded programmes with defined responsibilities and measurable outcomes is critical for effective service delivery.

Delving deeper into the province’s fiscal strategy, Maile introduced several reforms aimed at boosting revenue generation and collection. He highlighted plans for the new debt collection unit, which will be instrumental in tracking down motor vehicle owners who owe outstanding debts to the province.