Installment Payments Now Allowed for Vehicle Fees and Fines

Paying vehicle and vessel fees in lump sums can be a financial strain for many. To ease this burden, the Ministry of Transport has introduced a new regulation allowing annual fees and fines for road and sea vehicles to be paid in installments. This move is designed to help vehicle owners better manage their finances while ensuring compliance with the law.

What Is the New Regulation?

The newly gazetted "Regulation on Installment Payment of Road and Sea Vehicle Annual Fees and Fines" provides a structured payment plan for eligible vehicle owners. This option is especially beneficial for those struggling to clear large outstanding amounts in one go.

Who Qualifies for Installment Payments?

Not every vehicle owner can apply for this arrangement. The regulation outlines specific criteria to qualify:

1. The total outstanding amount must exceed MVR 10,000.
2. Payments must already be overdue.
3. The vehicle owner must voluntarily request to pay in installments under the regulation.
4. The owner should not have previously been granted an installment plan for the same fees.
5. Only the registered owner of the vehicle can apply.

Meeting these criteria is essential to take advantage of the installment option.

Commitment Fee and Payment Process

To start the installment process, applicants must pay a commitment fee within 14 days of approval. The ministry has set clear guidelines on how this fee is calculated. Failure to pay the fee within the stipulated time will result in the applicant losing the opportunity to pay in installments.

Once the commitment fee is cleared, the Ministry of Transport will draft an agreement outlining the terms of payment. The monthly installment amount will be determined after deducting the commitment fee.

Consequences of Missing Payments

The regulation emphasizes the importance of staying on track with payments. If a vehicle owner fails to make payments within 30 days of signing the agreement, the ministry reserves the right to cancel the arrangement. This ensures accountability and prevents misuse of the leniency provided.

Why This Matters for Vehicle Owners

The introduction of installment payments is a significant step toward making vehicle ownership more manageable. For owners of multiple vehicles or those with large fines, this option offers financial breathing room. However, the strict guidelines highlight the ministry’s effort to balance leniency with responsibility.

Key Takeaways

• Installment payments are now available for vehicle and vessel fees exceeding MVR 10,000.
• Applicants must meet five specific criteria, including being the registered owner and overdue on payments.
• A commitment fee must be paid within 14 days to secure the installment plan.
• Missing payments could lead to the agreement being canceled.

This new policy aims to support vehicle owners while maintaining fairness and order. By offering flexibility, the Ministry of Transport ensures that individuals can fulfill their obligations without undue financial stress. Vehicle owners are encouraged to review the regulation and assess their eligibility for this beneficial payment arrangement.