Before the implementation of carbon emissions tax, all you had to worry about was finding a car to suit your lifestyle, your needs and your budget. Well, your car budget is about to undergo an overhaul. And it won't look great on your bank statement.
GOING GREEN
Essentially, says Kerry Wright, director of
Cleaner Climate South Africa, carbon emissions tax is a good idea. 'South Africa needs to institute a multitude of emission reduction measures in order for us to meet our Copenhagen Accord commitment of reducing the country's emissions by 34% in 2020.'
The carbon dioxide emissions tax is supposed to encourage you to move towards more energy-efficient and environmentally friendly vehicles, says Douw Leadley, divisional executive of sales and operations for Nedbank's motor division. This could have an impact on your buying behaviour if you're considering buying a new versus a used car, he says, as the emissions tax could add between R5 000 and R10 000 to the price tag of an average new car.
WHAT'S THE DEAL?
If you're looking to buy a new car, the deal won't seem so sweet at first. And it seems the motor industry is with you on this one, considering we're the only country in the world to impose tax on regular cars (and not cars being used for commercial purposes). They have criticised the tax and don't believe South Africa can import or produce cars with lower CO2 emissions, says Leadley. Why? Our fuel specifications are not yet up to standard for this move, he explains. The motor industry also believes that the tax is coming at a bad time. South Africa is still recovering from the recession, which means new vehicle sales will plummet and jobs will be lost.
On the flipside, the National Treasury will benefit from the carbon emissions tax. 'From a tax revenue perspective, emissions tax could potentially raise R1 billion a year in revenue for the National Treasury,' says Leadley. Let's just hope it's spent on environmental issues.
Wright agrees. There is concern, she says, that the income generated from this tax has not been ring-fenced specifically for funding of environmental or emission reduction projects and is simply falling under general taxes.
BEST BUYS
Despite the criticism, Wright believes carbon emissions tax is a good motivation for all new car buyers to consider buying smaller, more efficient models. 'It will save you money in the long run anyway, as you end up using less fuel.'
The carbon emissions tax means that new cars are taxed based on their certified CO2 emissions at R75 per g/km (grams per kilometre) for each g/km above 120 g/km, says Leadley. So, if you're looking to buy a new car and aren't sure which cars are both environmentally friendly and affordable, here are a few ideas for you to consider.
A Toyota Yaris emits 127 g/km, a Kia Picanto, 141 g/km and an Opel Corsa Lite 1.4, 174 g/km. At the top end of the budget cars, an Opel Corsa Lite will cost you approximately R4 000 more than it would have before the implementation of carbon emissions tax. If you wanted to treat yourself to a BMW X5 4x4, which emits 325 g/km, you'll end up forking out about R15 000 more than the original sale price. 'But, be honest,' says Wright, 'do you really need a big, gas guzzling 4x4 to run around town?'
So, if you need a little guidance before you start looking for your dream car, visit the
National Association of Automobile Manufacturers of South Africa. On their website, select which make and model you wish to buy and you'll be able to find out what its fuel consumption is, as well as how many grams of CO2 it emits. This way, you'll be able to see exactly how much extra money you'll need to spend on buying your new car.