A stiff increase in excise duties on tyres imported from China will probably push cash-strapped South African motorists further down the slippery slope of poor road safety.
This is according to the Automobile Association (AA). In a statement released late in September, the AA lamented the announcement by government of the addition of a 38.33% excise duty on tyres imported from China. This is on top of existing excise duties of between 25% and 30%. Tyres sold locally will now have an excise loading of between 63.33% and 68.33%.
The AA reasoned “that already embattled consumers will balk at paying higher prices for tyres and will, unfortunately, continue using tyres that are in a poor condition because they cannot afford the new prices”.
According to the AA: “The increase in excise duties comes after the South African Tyre Manufacturers Conference (SATMC) argued to the International Trade Administration Commission (ITAC) that tyres were being imported to South Africa at ‘unfairly low prices’.”
The Tyre Importers Association of South Africa (TIASA) has countered SATMC’s complaint though, saying even local manufacturers import up to 80% of the variety of tyre models they sell anyway and has questioned the rationale behind the increased taxation.
The AA also warned that public transport users will be at risk.
“Operators not wanting to spend the extra money on new tyres will continue to drive with poor condition tyres, or use inferior ‘refurbished’ tyres, putting the lives of their passengers and other road users at risk. The increased prices of tyres are, simply put, going to create major road safety problems in future,” noted the AA.
BAIC South Africa has confirmed that the all-new BAIC B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. This step, says BAIC, marks another significant step in the brand’s long-term commitment to the South African market.
Changan South Africa has announced its full vehicle range and the prices of new entrants into the local market.
Messe Frankfurt expands its roster of shows with a Festival of Motoring in Australia and industry shows in Jakarta and Azerbaijan.
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A light on my car’s dashboard came on, and instead of fixing the problem, I waited for the bulb to burn out. Crisis solved.
Jarod Kintz
BAIC South Africa has confirmed that the all-new BAIC B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. This step, says BAIC, marks another significant step in the brand’s long-term commitment to the South African market.
Messe Frankfurt expands its roster of shows with a Festival of Motoring in Australia and industry shows in Jakarta and Azerbaijan.
In South Africa, a car is more than a convenience, it’s a lifeline. For many, it’s how they get to work, take children to school, or keep small businesses running, especially when public transport often falls short.
