Africa-Press – Namibia. After a rigorous process that commenced in 2021, the Road Fund Administration (RFA) this week announced that the law has been amended for all vehicle licence fee debts older than three years to be written off.
This will result in more than N$371 million in prescribed debt automatically written off, freeing thousands of vehicle owners from historical obligations that can no longer be enforced.
In addition, unprescribed debt of over N$245 million may now qualify for the waiver of interest and penalties, providing much-needed financial relief while still preserving motorists’ obligation to settle the principal licence fees.
“For the Namibian public, the benefits of these amendments are both immediate and far-reaching. By removing these barriers, the amendments make it easier for vehicle owners to return to compliance and continue using Namibia’s roads legally.
At the same time, the changes ensure greater transparency and fairness in the system, reduce the administrative burden on both the RFA and NaTIS, and strengthen public confidence in how vehicle licence fees are managed,” said RFA’s CEO Ali Ipinge.
Under the amended legislation, vehicle licence fee debts older than three years are now regarded as prescribed.
In terms of the Prescription Act, these debts are legally extinguished and will automatically be written off by the RFA and the Namibia Traffic Information System (NaTIS).
Vehicle owners do not need to apply for this relief, as it will happen by operation of law, representing a significant step in relieving the public of historical debts that can no longer be enforced.
Said Ipinge: “Ultimately, this reform represents a balance between compassion and accountability, easing the financial pressures on citizens while safeguarding the sustainability of our national road network. This is not just a technical or administrative reform. It is also a social and economic milestone. The amendments recognise the financial hardship faced by many Namibians, while at the same time ensuring that those who are able to pay continue to meet their obligations. It strikes a balance between compassion and responsibility, between legal certainty and fiscal prudence”.
For debts that are less than three years old, referred to as unprescribed debt, the amended legislation introduces an opportunity for relief.
Vehicle owners may apply for a waiver of interest and penalties on outstanding amounts.
While the principal vehicle licence fees remain payable, the interest and penalties can be waived upon successful application.
The RFA’s CEO, with the approval of the RFA board, is authorised to waive interest and penalties of up to N$1 million.
Where the amount of interest or penalties owed exceeds N$1 million, the applicant may apply to the finance minister, who has the authority to grant waivers beyond this threshold, upon recommendation by the RFA.
However, all applications to the finance minister must still be submitted through the RFA, which is mandated to raise and manage funds for the maintenance and development of Namibia’s national road network.
The amended law also addresses vehicle entry fees that now stipulate exemptions may be granted in certain situations, including for cross-border military exercises approved by the defence ministry, the cross-border transport of medical staff or patients and in instances where foreign police officers are granted temporary entry into Namibia with ministerial approval.
In addition, the finance minister may approve of other exemptions in the public interest, following due process.
This provision ensures Namibia’s transport system remains supportive of regional cooperation, humanitarian needs and national security.
The application process is free, and each application will be vetted by the RFA’s Licence Fee Interest and Penalty Waiver Committee before being considered by the CEO and finally approved by the board.
“Today marks a decisive step toward a fairer, more efficient and legally sound system for managing vehicle licence fee debt and entry fee exemptions. These amendments reflect the RFA’s commitment to transparency, fairness and continuous improvement. They provide immediate relief to vehicle owners, promote compliance and secure the sustainable funding of Namibia’s road infrastructure,” said Ipinge.
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