Speaking at the JSE-listed company’s financial results announcement in Johannesburg, he noted that the income stream from this tax regime should be used for research and development into producing vehicles that were more fuel frugal, or into electric vehicles, for example.
Brody said the funds collected in this way had “to be channelled to be a stimulus” for low carbon projects.
The new CO2 tax was expected to earn the national fiscus an estimated R450-million in the 2010/11 financial year. Cars would be taxed, based on their certified CO2 emissions, at R75 a g/km (R85 when VAT is included) for each g/km above 120 g/km, adding around 2% to 3% to the price tag of a car.
Treasury officials toldEngineering News last month that the main objective of the tax was to influence the composition of South Africa’s vehicle fleet, so that it became more energy-efficient and environmentally friendly.
Officials said that the revenues collected would be used to fund general government priorities, including various environmental objectives.
Imperial owns AMH, which imports the Kia, Hyundai, Bentley, Chery, Zotye, Foton and Daihatsu brands into South Africa.