January 4, 2011

2011 – the year of CO2 tax

When it comes to legislative changes in the motoring sector, the year ahead is likely to be the most trying for car buyers – especially those who plan on purchasing a new car. Their purchases will be subject to an emissions tax, which the National Association of Automobile Manufacturers of South Africa (Naamsa) believes will not work as intended.

Naamsa in August issued a statement in which it said it accepts the principle of environmental taxes to improve air quality and safeguard the environment in South Africa.

“The purported purpose of the CO2 new car tax regime is intended to send a strong signal to consumers, producers and importers of new vehicles in South Africa specifically to influence consumer behaviour in favour of more fuel efficient, less carbon emitting vehicles and, in the process, to improve ambient air quality in the country,” Naamsa said.

However, the organization believes that the tax regime as currently structured “will fail to achieve the intended objective”.


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