Installment payments allowed for vehicle fees and fines

The government has started allowing vessels and vehicles to be able to pay their annual fees and various fines in installments.

Ministry of Transport today gazetted a regulation titled 'Regulation on Installment Payment of Road and Sea Vehicle Annual Fees and Fines." The purpose of the regulation is to provide a convenient arrangement for those who find it difficult to pay the annual fee and the penalty as a lump sum payment.

According to the regulation, five criteria must be met to be able to receive this leniency.

- Outstanding amount exceeding MVR 10,000

- Payment period has expired

- Self-offer to pay in installments under the regulation

- Not having previously been given the opportunity to pay in installments

- The applicant must be the owner of the vehicle.

As per the regulations, the opportunity to pay in installments is also contingent on paying a commitment fee, which is to be cleared within 14 days. If the 14 days passes without paying the fee, the applicant would no longer be able to pay their fees in installments. The commitment fee is determined pursuant to the regulation.

Once the commitment fee is paid, the ministry will draw up an agreement. The agreement calculates the monthly installment payment after deducting the commitment fee already paid.

The regulation also states that the ministry has the right to cancel the agreement if the fees are not paid within 30 days of signing the agreement.