SA-manufactured cars more expensive here, Naamsa

The Citizen says that it is not uncommon for some luxury vehicles in South Africa to have almost half of the price paid go to government's tax coffers. Vehicles manufactured locally are perceived as more expensive in South Africa than when those same vehicles are exported and sold in international markets.

The main reasons for these price disparities are market and distribution differences, specification differences between the models sold, inclusion of add-ons such as motor plans, the exchange rate and the taxes levied on local sales of vehicles.

National Association of Automobile Manufacturers of Southern Africa (Naamsa) executive director Nico Vermeulen told CitiBusiness that taxation is such an issue that Naamsa discussed it with government. While Naamsa does not get involved in the pricing specifics of the different vehicle manufacturers, "vehicle affordability and vehicle taxation represents an issue of concern to the automotive industry." Buyers of motor vehicles, he said, are confronted with various taxes. Motorists are taxed not just on the vehicles they buy, but also on fuel, tolls and fringe benefits for company cars. "[These issues] have been discussed with the department of trade and industry and will probably also be discussed with Treasury," Vermeulen said.

Read the full article on www.citizen.co.za.