From the beginning of September 2010, the introduction of a carbon emissions tax or levy on all new motor cars was introduced in South Africa. The carbon tax is levied as an additional tax which is included in the sale price of the motor car and paid to SARS by the manufacturer. While the Finance Minister has postponed the tax on the sale of all new double cabs and light delivery vehicles, it is expected that this will be put in place within the next year. 

This additional tax is levied on the quantity of CO2 gases emitted by the vehicle that exceed 120g/km plus a value added tax.  The tax is charged at R75 per additional g/km over this baseline. The actual amount of CO2 gases released by a motor vehicle is available per model from the manufacturer.

For example a vehicle with a CO2 of 155g/km will incur a tax calculated as follows:

(155g/km - 120g/km) x R75 plus 14% VAT = R2 992,50

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