Related Articles
Top Stories
Feb 10 2012 18:19
The rand tumbled against the dollar in late afternoon trade as the local currency tracked a jittery euro.
Feb 10 2012 17:28
President Jacob Zuma will make an announcement "of national importance" on Saturday, says a central bank statement.
Feb 10 2012 14:37
A weak euro has dragged down the rand, causing it to extend losses against the dollar as the eurozone debt crisis affected investor sentiment.
Johannesburg - National Treasury said there is no question about a deferral for the introduction of a "green tax" on new imported vehicles.
The tax comes into operation on March 1.
According to the structure which will become effective in March, the ad valorem duty on a vehicle with a R300 000 retail price drops from 6.5% to 3.8%, for a R200 000 vehicle from 4.1% to 2.2%, and for one worth R150 000 from 2.9% to 1.4%. The duty on a vehicle with a R1m retail price comes down from 20% to 15% and a R1.3m vehicle's import duty remains 20%.
The supplementary "luxury tax" will be levied at the rate of 8% on a new vehicle spewing greenhouse gas at a rate of 240 grams per kilometre, 10.7% on 280 grams and 12% on 300 grams. Vehicles with greenhouse gas emissions of under 120 grams per kilometre will be exempt from the tax.
'Inappropriate time'
Commenting on the looming tax levy, the director of the National Association of Automobile Manufacturers of SA (Naamsa), said this tax could send the motor industry, which is gradually emerging from the downturn, back into recession.
The big unhappiness is the fact that the fuel sold in South Africa does not comply with the new technological requirements necessary to avoid the green tax.
Importers are aware of this shortcoming in South Africa's fuel and subsequently do not fit the vehicles with the latest technology.
Johan van Zyl, president and chief executive of Toyota SA, said the tax is premature and should be introduced only when cleaner fuel is available.
Anton Moldan, environmental adviser to the South African Petroleum Industry Association, said discussions between the association and government are under way so as to get cleaner fuel into the market as soon as possible.
About R40bn will have to be invested in local refineries to make production of this fuel possible. Once a final decision has been taken on the issue it will take about another five years before the fuel will be available across the market.
- Sake24
For more business news in Afrikaans, visit Sake24.com.