Starting today, September 1 2010, South African buyers will pay an ad valorem CO2 emissions tax on new passenger vehicles.
The emissions tax will initially apply to passenger cars, but will be extended to commercial vehicles once agreed CO2 standards for these vehicles have been set. The main objective of this emissions tax is to influence the composition of South Africa’s vehicle fleet to become more energy efficient and environmentally friendly, while generating an estimated R1 billion in revenue.
New passenger cars will be taxed based on their certified CO2 emissions. Any new passenger vehicles with a CO2 rating of above 120 g/km will attract a tax of R75 for every g/km over that value.
As an indication of how this new tax will affect new passenger vehicles in our local market, have a look at the table of averages below, which shows the CO2 tax value according to the emissions figures.
Related posts:
