These major tax changes could make cars much cheaper in South Africa
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The National Automobile Dealers’ Association (NADA) says the automotive industry needs a significant financial stimulus package from the government which will allow it to accelerate its recovery processes.
The most effective way to increase sales will be to make new vehicles more affordable by reducing the huge portion of the purchase price that goes to the government in various forms of taxation, said NADA chairperson Mark Dommisse.
“These taxes make up only a part of the massive tax burden that motorists and transport operators have to ultimately bear, which includes for example the highly taxed fuel levy, annual licence fees, controversial toll fees, and a tyre levy,” he said.
While the pandemic has had a dramatic impact on business and industrial landscapes, both locally and abroad, one of the industries that had to adapt or die quickly is the automotive industry, in all its facets. This has meant rethinking how it does business and what stimulus packages would help get it firing on all cylinders again.
Motor manufacturers and importers indeed rallied to the flag with active and meaningful support for fighting the virus, right from its onset in March 2020. Subsequently, they have been very supportive of their retail dealer networks.
At NADA (National Automobile Dealers Association), we are very proud of how most of our members have been able to manage their businesses through this crippling pandemic. In some cases, the steps taken involved making tough decisions such as right-sizing, retrenching staff, and even considering relocating premises.