Truck assemblers await clarity on incentive programme
South African truck assemblers were currently operating without an official incentive scheme to reward and stimulate local production, as government’s Motor Industry Development Programme (MIDP) officially ended in 2012.
One of the challenges for 2013 was for the truck and bus portion of the new Automotive Production and Development Programme (APDP) to be gazetted ,“so we can take action around it. We were hoping to have the new legislation in place by the end of 2012”, said UD Trucks Southern Africa (UDTSA) corporate planning and marketing GM Rory Schulz on Tuesday.
Speaking in Ekurhuleni, he added, however, that the MIDP benefits remained in place until work on the new truck programme was wrapped up.
“To my knowledge it [the new APDP truck programme] is lying with one of the Ministers to be signed off.”
UDTSA assembled trucks at its Rosslyn facility, outside Pretoria.
Schulz said incentives under the truck programme appeared similar in nature to APDP passenger car incentives. One portion of the truck programme’s incentives would be taxable grants to develop and assemble as many trucks locally as possible.
Currently, under the MIDP, trucks that were imported as semi-knock down (SKD) vehicles and assembled locally, were subject to a 20% duty that was fully rebated – which, in essence, meant local assembly was a zero-duty game.
However, noted Schulz, under the APDP this would change, as the definition for SKD would be amended, demanding more local manufacture and input before trucks could be imported duty free.
“If you assemble here, you would need to add certain elements to become duty neutral,” said Schulz.
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