We have all heard about the new Carbon Emissions Tax on new vehicles purchased, but what does this mean for the man on the street?
Well, let’s first start and ask why there is a need for this tax. Worldwide human beings annually produce a sum of 27 billion tons of carbon dioxide. Hearing this figure, I totally agree that something needs to be done, but is tax on new vehicles the answer?
Other countries in the world that have already implemented these taxes include: Japan, South Korea, Denmark, Finland and France. While it is very exciting being part of these 1st world countries, South Africa is still building new coal power stations.
South Africa, however, is the first country to implement carbon emissions tax, without cleaner fuel being available. Fuel produced in South Africa still complies with Euro 2 levels, while European countries are already at a Euro 5 level. Cleaner fuel paves the possibility for more fuel efficient engines.
Currently this tax will only be applied to new vehicle purchases starting 1 September 2010. Light commercial vehicles will be excluded from this tax. Mr Pravin Gordhan also announced on 24 August 2010 that government is considering implementing this tax on all vehicle purchases, new and old. The question is raised, how will they be able to administer this? That, however, is a topic for another day. Let’s look at what this will cost you when buying a new vehicle:
Top 10 passenger cars (June 2010):
Top 10 Light commercial vehicles (June 2010):
Top 10 Most Economical vehicles (June 2010):
Top 10 Most Uneconomical vehicles (June 2010):
(*) – The model selected for each make is based on “Our choice” as listed in CAR Magazine
Sources: Top Car (September 2010 issue), CAR Magazine (August 2010 issue)
Government expects to generate revenue of R450m in 2010/2011 from this tax. The big problem with this tax however, is the fact that a person buying a Polo Vivo Hatch 1.4 will be taxed about R4000, while the person driving a old Ford pick-up with injectors not working properly, will be taxed nothing. It thus comes back to the old habit of taxing the rich even more.
The other question is: What will government do with this new R450m of revenue? Buy new BMW 750i’s for Members of Parliament? So much for saving the planet!
So basically if you drive a car that don’t over pollute the planet you should not be affected.
Now if we only can convince the SA government to not buy BMW’s/Mercs and rather use the money to upgrade our fuel quality to Euro 6 (latest one 2010).
I totally agree with Steven. While public transport is non existent in South Africa, the daily commuter must rely on motor vehicle transport. This new tax however is just another way of taxing the rich! What will happen when all the rich, and most tax paying people, leave the country?
How will the government fund their new cars then?
So, does this tax apply to the purchase of second hand cars? The older the car the higher the emissions more or less.
Hi Kate
When this tax is implemented on 1 September 2010, it will only be applicable on purchases of new vehicles. Mnr Pravin Gordhan did however say that they are considering implementing this CO2 tax on second hand vehicles as well. This however will only be implemented, if at all, next year some time.
I totally agree with you regarding the fact that older vehicles have higher levels of CO2 emissions. That is why this new tax is so ridiculous.
The way how second hand vehicles will be taxed is also something that will require some thinking. If the tax is implemented only on change of hands of vehicles, one will think real long about selling or buying a second hand vehicle…