The New Vehicle License Issuance And Renewal Fee Is Now in Effect

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Saudi Arabia has introduced an annual fee for obtaining and renewing vehicle registration licenses (istimara) based on a vehicle’s fuel efficiency. The new fee has already begun being implemented this week reported the Saudi Gazette. This change, however, will be implemented in two phases.

During the initial phase, the fee will apply exclusively to owners of new light vehicles of the 2024 model. In the second phase, which takes effect in 2024, it will encompass both light and heavy vehicle owners.

The calculation of the annual fee will be based on two criteria. For vehicles manufactured in 2015 and earlier and all heavy vehicles, the criterion will be engine capacity. For light vehicles produced in 2016 and later, it will be fuel efficiency.

So it’s time to get a fuel efficient car peeps, ‘cus the more gas-guzzling your car is the higher fee you’ve got to pay. This is a win for the environment!

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