Carbon Emissions Motor Vehicles tax (within 2009-2010 budget)

The 2009 Budget introduced an ad valorem CO2 emissions tax on new passenger motor vehicles. However, it was later recommended that the original tax proposal be converted into a flat rate CO2 emissions tax, effective from 1 September 2010. The emissions tax has initially been applied to passenger cars, and extended to commercial vehicles once agreed CO2 standards for these vehicles are set. New passenger cars will be taxed based on their certified CO2 emissions at ZAR75 (USD6.77) per g/km for each g/km above 120 g/km. This emissions tax will be in addition to the current ad valorem luxury tax on new vehicles.