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Vehicle CO2 tax emissions on all double cabs will be implemented as of 1 March 2011, says National Treasury.
This follows talks with Finance Minister Pravin Gordhan and Chief Executive Officers of seven motor vehicle manufacturers in South Africa and a delegation from Business Unity South Africa (BUSA) last week.
The meeting was held to discuss industry's concerns about the introduction of CO2 vehicle emissions taxation in South Africa.
"To allow manufacturers and importers sufficient time to test and determine the CO2 vehicle emissions of all double cabs, the tax on double cabs will only be applied from1 March 2011," said Treasury on Thursday.
The implementation of vehicle emissions tax on passenger cars will proceed as scheduled on 1 September.
The implementation of this tax on light commercial vehicles follows concerns raised by industry on the fact that reliable data on CO2 emissions by light commercial vehicles (including double cabs) was not available and that there was no internationally applied test method to measure the emissions of light commercial vehicles were some of the issues raised.
The intention of the tax is to deal with environmental changes by including regulatory interventions and environmental taxes.
"Minibus taxis are currently excluded from this tax as they are predominantly used for public transport. However, the position of minibus taxis will be reviewed when all other light commercial vehicles become subject to the CO2 vehicle emissions tax."
As of 1 September passenger cars and double cabs (as of 1 March 2011) that cannot produce certified CO2 vehicle emissions data will be subject to a tax based on a proxy CO2 emission calculation, largely based on engine size. Such a proxy tax will include a significant penalty provision, warned Treasury. - BuaNews
