Local electric, foreign cars may face levies

The Motor Vehicle Accident (MVA) Fund has proposed the introduction of new levies on vehicles, including electric and foreign-registered cars, as part of efforts to reduce its dependence on fuel levy income and secure long-term sustainability.

Speaking at a public consultation on legislative amendments, MVA legal services manager Feni Nashilundo raised concern that the rising number of road accidents and injuries is straining the fund’s limited revenue base.

“In trying to address that over-reliance, especially for us as an institution, we only have one source while the number of accidents and injuries is escalating on a daily basis.

To try and address that over-reliance on a single source of money, we are proposing additional levies in the form of either foreign-registered vehicle levies, locally registered vehicle levies, as well as an electric vehicle levy,” she said.

Currently, the fund is financed through a fuel levy system, receiving 47 cents for every litre of fuel consumed nationwide.

Nashilundo explained that this income is shared with other institutions, leaving the fund with only a portion to cover obligations such as medical treatment, rehabilitation and benefits for accident victims.

The proposed levy on local vehicles could be collected during licence disc renewals, with possible rates ranging from N$5 to N$50.
Passenger-based fees are also under consideration.

A levy on foreign-registered vehicles has received widespread support, with Nashilundo noting it would be easier to administer without adding pressure on Namibians already contributing through fuel costs.

“For foreign vehicles, I don’t think there is an issue in terms of collecting or proposing such a levy.

But usually, when you are an institution imposing levies on the same people over and over again, it may become a problem,” she said.

The fund has also proposed moving benefit amounts, including medical and funeral cover, from the act into regulations.

This would allow the minister, on the recommendation of the MVA Fund board, to adjust benefits in line with inflation and rising living costs without lengthy legal amendments.

Funeral benefits could increase from N$30 000 to N$50 000, while medical cover would also be reviewed.

Other benefits, such as loss of income and loss of support, would remain capped at N$1.5 million.

“The intention is that even for benefits that have been in place for a long time, these amounts can be increased without undergoing the lengthy legislative process.

Once the amounts are moved from the act to the regulations, the fund will be able to increase benefits on a more regular and practical basis,” she said.

The MVA Fund further proposes the removal of the 50% penalty imposed on passengers transported without seatbelts, such as on the back of bakkies and trucks, citing that in rural areas these vehicles are often the only means of transport.

Employers and transport providers could, however, be held accountable for failing to meet safety obligations.

Additionally, the fund aims to extend the loss of support benefit to adult dependants of deceased breadwinners who are still in school or university.

Support would continue until the completion of a first undergraduate qualification, capped at age 25, with exceptions for students with disabilities.

“In such cases, the fund aims to establish that, since it is covering the costs of treatment, the employer should be held accountable if employees were improperly transported.

Essentially, the MVA Fund would seek reimbursement from the employer for the costs incurred in treating the injured employees,” Nashilundo said.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.