Tuesday, July 27th, 2010 | Author:

It was recently announced that there will soon be an extra fee to pay when purchasing a car and this has nothing to do with additional features, but rather the effect that the car has on the environment. Car dealers and others involved in the industry are up in arms about the proposed carbon emissions tax and many fear that the new carbon emissions car tax will have a significant impact on an already struggling motor industry that is still trying to recover from the recession.

The proposed imposition of carbon emissions tax is set to go into motion on the 1st of September and car dealers and other trading individuals are worried that this might knock the confidence of buyers as it is only now that individuals are feeling more confident with their money and are willing to spend on assets such as cars and homes. South Africans still do not have enough disposable income to purchase freely and are still holding tightly onto their savings, which will be kept in their bank account after the carbon emissions tax is implemented.

Another concern many have with the carbon emissions tax is the way it will be calculated there have still been no details given to car dealers and other individuals in the car industry and this will make it harder to explain to buyers why they will need to pay this compulsory carbon emissions tax when they purchase their car. There are already so many costs that go with purchasing drivers need to send their car in for regular services as well as to the panel beaters when accidents happen.

The public also still do not know exactly what the proceeds of this carbon emissions tax will be used for and this information should ideally be shared with those who are looking into buying a car this year. Passenger vehicles should be prepared to pay anything from 0,6% to 4,1% carbon emissions tax depending on their engine and this tax will soon be extended to commercial vehicles too.

South Africa is currently stuck in a catch 22 situation when it comes to carbon emissions taxes and this is owing to the fact that we cannot import more environmentally friendly engines that reduce carbon emissions into our country like the engines that are installed in cars in Europe. This has resulted in us having to pay carbon emissions tax and it does not seem like we will be seeing these more environmentally friendly engines in our cars anytime soon.

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