Vehicle prices would jump by around 2% when government’s new carbon tax is 
implemented on September 1, says McCarthy CEO Brand Pretorius.

This will add to last year’s vehicle price 
increases of between 12% and 13%, he notes.

Finance Minister Pravin Gordhan 
announced in his maiden Budget speech last month that new passenger vehicles would be taxed based on their certified CO2 emissions at R75 per g/km for each g/km above 120 g/km.

“We could see some pre-emptive buying in June, July and August,” says Pretorius. “After September, we could see a degree of swing to used vehicles.”

Used vehicles are still exempt from the 
carbon tax.

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