Feb 17, 2010
New vehicle owners to pay emissions tax from Sept 1Back
© 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 Automotive News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.