Saudi Arabia started charging an annual fee for the issuance and renewal of Vehicle Registration License

With effect from Sunday, October 22, Saudi Arabia began collecting an annual charge for issuing and renewing car registration licences (istimara), based on the vehicle's fuel economy. The levy will only be charged to owners of new light vehicle models starting in 2024 during the initial phase. The second phase, which will apply to all owners of both light and heavy vehicles, will go into effect in 2024. Two factors will be used to determine the yearly charge. For all light cars manufactured in 2015 or earlier and all heavy vehicles, the primary criterion is engine capacity; for light vehicles manufactured in 2016 or after, the criterion is fuel economy.

Low-consumption automobiles have no price, and the fee is split into five categories based on fuel economy. Remarkably, the Council of Ministers resolved in August 2021 to impose an annual cost for car licence issuance and renewals based on fuel economy. Various government agencies, 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, are involved in the annual fee application process.

Visit the Markabati platform at markabati.saso.gov.sa for further information.