Pretoria - 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.
However, Treasury said the National Regulator for Compulsory Specifications (NRCS) had confirmed that its testing facility in East London measured CO2 emissions for all vehicles tested at the facility, including light commercial vehicles. To this, the industry responded that not all vehicles are tested at the NRCS facility.
"Other light commercial vehicles, single cabs and light vans, will be subject to the CO2 vehicle emissions tax at a date still to be decided. The meeting acknowledged the need to engage the NRCS, NAAMSA and the Departments of Energy and Trade and Industry on regulating and implementing systems for emissions testing of light commercial vehicles," said Treasury.
The intention of the tax is to deal with environmental changes by including regulatory interventions and environmental taxes.
At the meeting it was agreed that the industry and Treasury will encourage motor dealers to show CO2 vehicle emissions tax on invoices separately.
Single cabs, light vans and other light commercial vehicles which will be subject to the tax will do so at a date that is still to be decided while it was also acknowledged that there needs to be engagement with the NRCS, NAAMSA and the Departments of Energy and Trade and Industry on regulating and implementing systems for emissions testing of light commercial vehicles.
"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.
In terms of cleaner fuels, the meeting agreed on the need to expedite the availability of cleaner fuels in the countries adding that emerging economies like China and Brazil had made progress in introducing cleaner fuels.
"Although cleaner fuels do not directly reduce CO2 emissions the need for cleaner fuels to improve fuel efficiency is important. The introduction of the latest fuel efficient engine technology, which is directly related to CO2 emissions, requires improved fuel quality," said Treasury.
Of the other measures considered is the implementation of a CO2 vehicle emissions tax on all cars, new and old, by reviewing vehicle license fees, which are implemented by provinces. As the country improves its public transport infrastructure and opportunities, higher fuel levies may also be imposed.
