Business Tech World

New RTMC Online Payments Have Hidden Tax Increases

Civilian action group, the Organization Undoing Tax Abuse (OUTA) has accused the Road Traffic Management Corporation (RTMC) of unfairly escalating costs in its recently launched online payment and license renewal system.

The road company announced on Thursday that it has finally entered the digital age with the introduction of an online payment portal.

Transport Minister Fikile Mbalula is optimistic that digitizing essential services would reduce corruption endemic in driving license testing centers and shorten on-site queues.

But Outa is now accusing the road agency and department of raising fees for transactions such as those for changes in vehicle ownership.

“It’s all very well to say that you can now have your vehicle changed hands from the comfort of your home, but the cost of doing so has increased from around R150 to R530, plus another R99 courier fee. This is nothing but a scam and an unacceptable way to make money,” says OUTA Senior Legal Project Manager Andrea van Heerden.

Outa is convinced that these excessive revenue streams will do nothing to curb the rampant and daring corruption that plagues these service centers.

“When he was the CEO of RTIA, Japh Chuwe was allowed to increase his salary from the already high R3.3 million per year to R10.8 million in one year.

“With a massive increase in new revenue streams coming to these state-owned companies, they are finding creative ways to spend this money, essentially turning them into new breeding grounds for more corruption and mismanagement,” said Van Heerden.

These essential service fees were once available at minimal cost to motorists, but OUTA says these fees are now being turned into a “profit center.”

OUTA had objected to the new “administration” fees proposed by the Ministry of Transport last year in the announcements published last year.

But it says the final version released in January contained only minimally reduced fees and essentially “forced these fees into the system, with no explanation as to why these additional fees should be applied in the first place.”

“The move to the digital age should not be disguised as making it easier for society to transact with the state and then hit the public with increases in service fees of up to 250% and more for this benefit. This is downright gross abuse of power and should not happen,” concludes Van Heerden.

compiled by Narissa Subramoney

READ NOW: RTMC Launches Online Payments, Promises New Era of Enhanced Services

Leave a Reply

Your email address will not be published.