Saudi Arabia has started charging an annual fee for the renewal and issuance of a Vehicle Registration License (istimara).
The fee came into effect on October 22 and will be in accordance with the vehicle’s fuel efficiency effective.
However, the fee will only be applicable to owners of 2024 light vehicle models, as part of phase one.
The second phase will come into force during 2024, which will cover owners of all light and heavy vehicles.
Saudi Arabia’s new vehicle licence fee
The new annual fee is calculated based on two criteria and is divided into five levels.
The first criteria, is based on engine capacity for all light vehicles models of 2015 and before and all heavy vehicles.
The second criteria, is based on fuel efficiency for light vehicles model 2016 and later.
The fee has also been divided into five levels as per fuel consumption efficiency. No fee will be charged for low-consumption vehicles.
In August 2021, the Council of Ministers in Saudi Arabia made a significant decision to introduce an annual fee for vehicle license issuance and renewal based on their fuel efficiency.
Several government agencies are involved in implementing this annual fee, 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 Center, and the Saudi Energy Efficiency Center.
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