Introducing the New Fee System
Saudi Arabia has decided to revise the fee for vehicle registration licenses, popularly known as Istimara. Starting Oct. 22, 2023, the new fee structure took effect. The new fees are primarily tied to a vehicle’s fuel efficiency. This article will discuss the details of the new Istimara fee structure.
Who’s Affected and When?
Those of you planning to purchase a 2024 model light vehicle will be the first to experience this new fee system. However, it’s essential to note that by 2024, all vehicles, be they light or heavy, will come under this fee structure.
| Vehicle Type | Timeline |
|---|---|
| 2024 Model Light Vehicle | Starting Oct. 22, 2023 |
| All Vehicles (Light and Heavy) | Starting the year 2024 |
Criteria for the Fees
The Istimara annual fee is based on two key factors. For light vehicles from model year 2015 and earlier, as well as all heavy vehicles, the fee is determined by engine capacity. However, for light vehicles from model year 2016 onwards, fuel efficiency becomes the deciding factor. This fee is segmented into five tiers based on fuel consumption rates, with the most fuel-efficient vehicles exempt from any fee.
Light and Heavy Vehicles Made in 2015 and Earlier
| Classification level | Engine capacity (litres) | Annual Fee (SAR) |
|---|---|---|
| 1 | or less 1.9 | 0 |
| 2 | 2.4 – 1.91 | 50 |
| 3 | 3.2 – 2.41 | 85 |
| 4 | 4.5 – 3.21 | 130 |
| 5 | Higher than 4.5 | 190 |
Light Vehicles Made in 2016 Onwards
| Classification level | Fuel Economy (km/l) | Annual Fee (SAR) |
|---|---|---|
| 1 | 16 and Above | 0 |
| 2 | 14-15.99 | 50 |
| 3 | 12-13.99 | 85 |
| 4 | 10-11.99 | 130 |
| 5 | Less than 10 | 190 |
Conclusion
In conclusion, Saudi Arabia’s new Istimara fee structure emphasizes the importance of fuel efficiency in vehicles. Whether you own an older model or plan to purchase a new one, it’s crucial to understand these changes. Remember, choosing a more fuel-efficient vehicle might save you money in registration fees. Stay informed and make the best choice for your needs!
