Receiving a fine after the implementation of the upcoming Aarto demerit system won’t only mean losing points against your licence, but you might also find yourself liable for an additional R100 in taxes, according to the Automobile Association.
This is what the AA interprets after studying the recently published draft regulations for the Aarto Act, where mention is made of an ‘Infringement Penalty Levy’.
“With regards to the Infringement Penalty Levy, the regulations directly imply the imposition of a tax. In this case, it refers to a fee payable for every infringement notice issued to motorists,” the AA said.
“On our interpretation of the draft regulation, this means an additional R100 is added to each fine issued, regardless of the value of the fine or its associated demerit points. In other words, if a motorist receives a R200 or R2000 fine, an additional R100 must be added for the Infringement Penalty Levy, which amounts to a tax for actually receiving the fine,” the AA added.
This could add up to a lot of money.
The association also criticised the “complicated and cumbersome” systems in place for motorists to check the status of their demerit points, and the lack of an easy online system for making inquiries. Instead, motorists must pay up to R240 to enquire as to the status of their demerit points.
Earlier this month, Transport Minister Fikile Mbalula announced that Aarto was expected to be “in full effect” from June 2020.
As previously reported, motorists will lose a certain amount of points for every road infringement committed. This will differ depending on the offence in question. Most speeding fines will likely result in two to four points being deducted, while exceeding the limit by 40km/h or driving intoxicated will see six points deducted.
The points will accumulate over time and for every point exceeding 12 points, drivers will have their licence suspended for three months, only to be gained back at a rate of one point every three months, assuming that no further contraventions occur.
The Organisation Undoing Tax Abuse (Outa) has previously expressed strong doubt that the government will be ready to implement Aarto by the middle of next year, and plans to challenge the constitutionality of the new law due to what it calls flawed administrative processes.
If the Administrative Adjudication of Road Traffic Offences (Aarto) Act, which was signed into law by President Cyril Ramaphosa last week, goes into effect, a trip from Johannesburg to Pretoria will cost consumers without e-tags R1 000.
A R250 fine would be levied against motorists for for every gantry passed without an e-tag present.
Critics have slated this decision as:
- This legislation could be used to bully non-paying motorists into paying e-tolls
- Gauteng currently has a 70% non-compliance rate, meaning the burden of billing motorists would be onerous
- Approximately 1,49-million trips are taken on Gauteng’s tolled roads daily
- For every R500 fine received under the new Act, motorists will receive a demerit point
- Non-payment of fines could result in a three-year driving ban
- This would cause havoc with the country’s economy as people would lose jobs and small businesses may close
Minister of Transport Fikile Mbalula has a deadline of Saturday 31 August to announce the future of the contentious tolling system.
By Sibongile Khumalo for News24
The South African Reserve Bank in 2017 imposed a total of R77.5-million in administrative fines to China Construction Bank and VBS Mutual Bank for failure to comply with the Financial Intelligence Centre Act.
The Bank Supervision Department annual report released on Tuesday indicated that the banks were penalised for “not identifying and verifying their customers’ details, not keeping records of customer identification, inadequate controls and working methods pertaining to the reporting of suspicions transactions”.
The heaviest fine of R75m was given to the Johannesburg branch of China Construction Bank Corporation – R20m was suspended for a period of three years.
The Venda-based VBS bank, which made headlines in 2016 when it granted former president Jacob Zuma a R7.9m loan for his Nkandla home, was fined R2.5m, of which R2m was suspended for a year.
The Reserve Bank last year placed VBS under curatorship, as details of its financial management came to light.
The report stated that the decision to impose the sanctions was not based on any evidence that the banks had “facilitated transactions relating to money laundering and/or the financing of terrorism”.
It revealed that its assessment of financial institutions showed that banks still needed to strengthen their controls when it comes to compliance with the FIC Act.
Compliance with Pillar 3 disclosure system, which require banks to publish easily accessible information that reflects their financial conditions, performance, risk exposure and corporate governance policies and policies was also a key area of focus.
During the 2017 period, a total of 28 illegal deposit-taking schemes were under review, 21 of them were carried over from the previous years, while 7 were new investigations. There are currently 19 schemes still under investigation, slightly higher than the 21 cases in 2016.
The bank said the regulation of schemes was done to ensure “the safety and integrity of the banking system and to protect the general public”.
According to the report, macroeconomic conditions continue to be unsupportive of meaningful and robust growth in credit extension, as appetite for household credit also remains sluggish.
Credit extension to the corporate sector grew modestly.
“Although household debt metrics continue to show signs of improvement, household debt remains persistently high.”
The report also noted that market uncertainty was seen throughout the year, both at global and domestic level.
The rand weakened over the period by 1.3%, and bonds also weakened with the depreciation of the currency.