Saudi Arabia: Annual vehicle licence issuance and renewal fee based on fuel efficiency comes into force
Vehicles recognised for their low fuel consumption will be exempt from fee
Dubai: Saudi Arabia has begun charging annual fee for the issuance and renewal of the Vehicle Registration Licence (istimara) based on vehicle’s fuel efficiency.
In the first phase that was initiated on Sunday, the 2024 model new light vehicle owners will be subject to this fee.
The subsequent phase is set to commence in 2024 and will cover all light and heavy vehicles.
The fee will be based on two primary factors. For all light vehicles from the 2015 model year and earlier, and for all heavy vehicles, the engine capacity will be the determinant. However, for light vehicles from the 2016 model, fuel efficiency will serve as the determining factor.
Fee has been structured into five tiers, contingent on fuel efficiency. Notably, vehicles recognised for their low fuel consumption will be exempted from this fee.
The significant decision was taken by the Council of Ministers two years ago.
Execution of this mandate involves several government entities, including the Ministry of Commerce, the Saudi Standards, Metrology and Quality Organisation, the Zakat, Tax and Customs Authority, the General Traffic Department, the National Information Centre, and the Saudi Energy Efficiency Centre.
