Car owners stung with 'luxury tax'

2011-02-23 14:04 - Greta Steyn
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Pretoria - Government is to increase the “luxury tax” on motor cars and to reintroduce a tax on screen monitors, it emerged in the budget today.

The budget review said passenger cars and light commercial vehicles are subject to a “luxury” excise tax that increases with the price of the vehicle.

Government proposes to increase the maximum nominal ad valorem excise tax rate on these vehicles from 20% to 25%.

Ad valorem excise duties on monitors were abolished in 2004, based on the assumption that they were used as computer screens.

However, some monitors are also used as televisions, which are subject to ad valorem tax. Ad valorem excise duties on monitors will be reinstated at a flat rate of 7%. These amendments will take effect on April 1 2011.

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