Wednesday, September 1, 2010

From today, consumers buying new vehicles will be cuffed with a carbon emission tax.

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In February this year the National Treasury announced that the tax which is aimed at encouraging people to drive more environmentally friendly cars.

Primarily the tax will apply only to passenger cars, but it will eventually be extended to commercial vehicles.

Automobile Association NAAMSA says South Africans will have to get used to the idea of having 'green taxes' to help protect the environment.

Nico Vermeulen says the tax is calculated based on how much carbon dioxide a car emits per kilometer.

He explains how motorists will be affected by the new CO2 tax: "The average vehicle will probably incur an additional cost to the consumer of about 2.5%, that is assuming the manufacturer and importer costs are passed on to the consumer.

"But in the case of a number of cars, the increase in the cost to the consumer - as a result of the tax - could be between five and six percent."

But Vermeulen says the tax on all double-cabs will only be implemented next year March, as the industry is still testing the fuel consumption in these vehicles.

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