Saudi Cabinet approved setting an annual fee for the issuance and renewal of Istimara according to their fuel efficiency. The decision included distributing the vehicles into two (2) 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.
Range of the Considered Fees for the Issuance and Renewal of Istimara
Currently, the renewal fees of Istimara is SR. 300 for 3 yearsr.
|Light Vehicles Made in 2016 and Later
|Rating Level||Fuel Economy (Km/I)||Annual Fees||Total Fees for 3 Years|
|1st||16 or more||0||SR. 300|
|2nd||15.99 – 14||SR. 50||SR. 450|
|3rd||13.99 – 12||SR. 85||SR. 555|
|4th||11.99 – 10||SR. 130||SR. 690|
|5th||Less Than 10||SR. 190||SR. 870|
|Light Vehicles Made in 2015 and Earlier and Heavy Vehicles
|Rating Level||Fuel Economy (L)||Annual Fees||Total Fees for 3 Years|
|1st||Below 1.9||0||SR. 300|
|2nd||1.91 – 2.4||SR. 50||SR. 450|
|3rd||2.41 – 3.2||SR. 85||SR. 555|
|4th||3.21 – 4.5||SR. 130||SR. 690|
|5th||Above 4.5||SR. 190||SR. 870|
The financial consideration ranges between SAR 50 and SAR 190 depending on their fuel efficiency. The annual fee will be applied in two phases for the issuance and renewal of Istimara, as follows:
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 for the issuance and renewal of Istimara.
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.
General Department of Saudi Traffic will be implementing the fees for the Issuance and Renewal of Istimara
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:
- Fees for issuing and renewing vehicle driving licenses as prescribed by law.
- Financial consideration for energy efficiency.
- The total value of issuing and renewing vehicle driving licenses includes issuance or renewal fees, and the financial consideration for energy efficiency.
Three (3) Authorities Will Work as a Team to Ensure the Financial Consideration Imposed
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 Saudi Vehicle owners won’t be paying the fees
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.
This decision will help the government economically and socially
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 that is added to the value of issuing and renewing driving licenses for vehicles.
The new government decision specified that the SEEC, in coordination with the concerned authorities, shall submit a report regarding the consequences of applying an annual financial compensation declaration to be 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 the vehicle owner’s objection to the value of the financial compensation can be done in 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, and this is to be followed by reviewing the objections by the Saudi Standards, Metrology and Quality Organization (SASO) on technical grounds apart from inspecting the vehicle if it is required.
n the second step, a technical team will be formed by SEEC to find appropriate solutions when there are objections concerning the application of the objection mechanism. The SEEC will 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.
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 take what is deemed 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 complain with the Administrative Court. For more information visit our website and keep reading the articles.
For more information, do visit our website. Stay safe!