There is a set tariff regime on vehicles and automotive components imported into South Africa. Import duties on vehicles and automotive components are set at 25% on light vehicles and 20% on original equipment components. A preferential agreement results in imported vehicles from the EU paying only 18% duty.
Tax Revenue
The import duty on medium and heavy commercial vehicles is set at 20% ad valorem. A preferential agreement results in imported vehicles from the EU paying only 12% duty. Assembly operations of trucks and buses receive the benefit of the duty-free importation of all driveline components, which include the engines, transmissions, drive-axles and gearboxes. However, tyres, which are manufactured domestically, attract a 15% import duty. The VAT is set at a standard rate of 15% in South Africa.
Ad valorem tax, essentially a luxury excise tax that exponentially increases with the price of the vehicle and is calculated according to a formula. Set at a maximum of 30%, the ad valorem excise duty is calculated on the basis of a sliding scale, with the rate of the duty increasing with the value of the vehicle.
Ad valorem tax, essentially a luxury excise tax that exponentially increases with the price of the vehicle and is calculated according to a formula.Set at a maximum of 30%, the ad valorem excise duty is calculated on the basis of a sliding scale, with the rate of the duty increasing with the value of the vehicle. CO² emissions tax is directly payable by the manufacturer/importer to the South African Revenue Service. This tax is recovered through the selling price to dealers and consumers.
The current CO² tax by vehicle type is as follows:
