Taxman wants another slice of your car

JOHANNESBURG - Motorists, already burdened by high fuel and car prices, are about to be hit by a carbon emission tax that could add up to R18 000 to the price of a fuel-guzzling 4X4.

Next comes a revision of perks tax that could increase the deemed value of a company car by 80%.

After that motorists will start paying billions a year in tolls on the new freeways.

At a wide-ranging review of the motor industry in Sandton Thursday, Toyota CEO Johan van Zyl and his marketing head, Andrew Kirby, were highly critical of the proposed CO2 emission tax.

Said Kirby: "The quality of SA fuel is so poor we cannot use the most modern fuel-efficient engines to reduce CO2 emissions below the 2-3g/km benchmark."

Toyota maintains it is more appropriate for the fuel companies to collect the tax at the pump. SA Revenue Services wants to impose the tax as an ad valorem duty that is incorporated into the price of the vehicle.

Said Van Zyl: "It doesn't make sense to tax the vehicle upfront. Rather tax people on the emissions they actually make."

His point is that if a motorist uses a car sparingly, he will emit less carbon than one who drives thousands of kilometres thoughtlessly - so tax him on his actual emissions.

The tax will add R19 000 to the price of a Toyota Land Cruiser ad R1 539 to that of a Corolla.

Proposed changes to company car tax could add R1 900 pm or 82% to the deemed value of a company car.

The SA National Roads Agency is on record that it wants a return on the R20bn it has spent on the Gauteng freeways. It will also want a return on the R20bn it is spending in other places across the country. It intends to service debt and make loan repayments out of tolls.

Those tolls will build slowly from an initial R2bn plus a year.

One of the ideas behind these levies and taxes is to change consumer behaviour, to pressurise motorists to switch to smaller cars - and to use public transport more.

Write to David Carte: davidcarte@moneyweb.co.za

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Tut-tut To think he would imply that "world-class" liquid fuel suppliers in South Africa do not supply "world-class' fuel to SA consumers but charge "world-class" prices. Has he mentioned it before? Or only the tax proposal made him blurt out such a statement? by . on July 16 2010, 15:43 Find this comment inappropriate? Report it

Public Transport!! What public transport? Taxi's??, you must be joking!! If the AN Goverment just want to stop filling up their own pockets with our tax money, maybe there will be something left to pay the toll and fuel taxes. by ME on July 16 2010, 16:20 Find this comment inappropriate? Report it

Sigh, I always wanted a company pedal cycle The peasants can buy Nikes! by Free the Rest on July 16 2010, 16:32 Find this comment inappropriate? Report it

Ring fence these revenues These taxes (in addition to the tolls) should be ring-fenced, and used for transport, specifically public transport, but also for roads maintenance. It should also be used to buy up land or development rights for strictly enforced green belts around out . .more cities, to limit the sprawl that is the ultimate cause of pollution, and which limits the use of public transport. Another use for these revenues would be to provide high speed broadband into homes, so that telecommuting can become viable. . .less by acv on July 16 2010, 16:37 Find this comment inappropriate? Report it

Oh what a lot of bollocks A couple of grand here and there is not going to change peoples choice of car, if you can afford a land cruiser the little tax that is added on is not going to stop you buying it, so whats the big deal and why bother with the tax. And that tax gets . .more financed so it will only add a few R100 on to the payment and when you are paying many thousands for like a land cruiser then a few hundred bob it not going hurt your pocket. . .less by Brendan on July 17 2010, 09:27 Find this comment inappropriate? Report it

Toyota Prius Funny how the Prius is on sale in South Africa and achieves the same, if not better, fuel economy than it does in the UK. How does it do the trick on South African fuel? by Puzzled on July 19 2010, 11:45 Find this comment inappropriate? Report it

Ommissions tax We all know that SARS is trying to kill the taxpayer. This is one of the unfairest ideas they have come up with. Why must we all pay so that the people who spend their days on the road get away with it? You cannot tax a person if he is not . .more utiliizing. It is most probably because Government is the biggest culprite. We are prepared to pay for our usage, but not for others who have no respect for the damage they are doing. The opposition must please make sure this this legislation does not go through as is. . .less by Elsie on July 19 2010, 12:45 Find this comment inappropriate? Report it

Government If government stops pumping all our tax money into their pockets we will probably not have to cough up more tax. A bonus paid to 1 politician will be enough to pay the emissions tax of 5 cars!. by CW on July 19 2010, 12:54 Find this comment inappropriate? Report it

Electric Car Will electric cars be tax exempt? Collecting the tax at the pump will not work, Collecting it at the toll is the only way SANRA can collect. One cannot pay emissions tax on a electric car. What about second hand cars will they be taxed again on the . .more sale? Just to many questions on this one. Not so sure on the fuel quality statement either. I thought our fuel was on par. . .less by Nick on July 19 2010, 12:57 Find this comment inappropriate? Report it

Electric Car Will electric cars be tax exempt? Collecting the tax at the pump will not work, Collecting it at the toll is the only way SANRA can collect. One cannot pay emissions tax on a electric car. What about second hand cars will they be taxed again on the . .more sale? Just to many questions on this one. Not so sure on the fuel quality statement either. I thought our fuel was on par. . .less by Nick on July 19 2010, 13:05 Find this comment inappropriate? Report it

Tax calculation According to CAR magazine, only new cars with an emissions rating of 120 g/km will be taxed from September, to the amount of R75 per g/km in excess of 120g/km. My question is: who will supply the "official" figure for emmissions tax - the manufacturer? by cwr on August 03 2010, 15:31 Find this comment inappropriate? Report it

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