Feb 17, 2010
New vehicle owners to pay emissions tax from Sept 1Back
Africa|Deloitte|Africa|South Africa|Automotive|Energy|Environmental|Treasury|Ricoh R10 Digital Camera
© Reuse this
In the 2010/11 Budget, the Treasury highlighted that subsequent to further consultation since the tax was first announced, the tax would be converted into a flat rate CO2 emissions tax.
New passenger vehicles will be taxed based on their certified CO2 emissions at R75 per g/km for each g/km above 120 g/km.
The CO2 emissions tax was expected to encourage South Africans to move towards more energy-efficient and environmentally friendly vehicles.
Tax advisory firm Deloitte earlier this month pointed out that this tax could add between R5 000 and R10 000 to the price tag of the average new passenger vehicle.
The emissions tax has been heavily criticised by the already struggling local automotive sector, which said that it could not import or produce certain vehicles with lower CO2 emissions, given that South Africa's fuel specifications were not yet up to standard with such vehicles.
The local automotive industry has also expressed concern that the tax, which was being implemented as the country is still recovering from its first recession in 17 years, could impact on new vehicle sales and curb job creation.
Deloitte tax director Duane Newman said on Wednesday that this tax could raise R1-billion a year in revenue for the National Treasury.
Further, many have also criticised the implementation of the tax, saying that there has been no indication that the revenues to be gained from the tax would specifically be spent on environmental issues.
The CO2 emissions tax would be in addition to the current ad valorem luxury tax on new vehicles.
The National Treasury was planning to eventually extend the emissions tax to commercial vehicles also, once agreed CO2 standards for these vehicles were set.
The National Treasury noted that it was continuing to research potential options to further expand environmental levies and taxes.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Passenger Vehicles News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...