Carbon tax on double cabs postponed

Finance Minister Pravin Gordhan said on Tuesday, 24 August, that after consultations with the country's largest motor car industry CEOs and taking into account some of the concerns of the industry, it was agreed that the tax on double cabs will be delayed slightly.

"It will come into effect in the next few months," said Gordhan, addressing the National Assembly on taxation laws amendment bills on Tuesday.

He said this tax would be extended to all other light commercial vehicles at a later date.

"Though not implemented this year, we are considering the implementation of a CO2 vehicle emissions tax on all cars, new and old," he said. This would be done through the reviewing of the approach to vehicle license fees which are implemented by the provinces.

"As we improve our public transport, we could also impose higher fuel levies and demand better quality fuel. All in all, there is a place for all these mechanisms if we want to reduce the emission of green house gases and ensure that we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change," said Minister Gordhan.