New Tax For Cars Worth More Than US$120 000
The new surcharge increasing the duty on luxury cars, double cabs and SUVs valued at more than US$120 000 is now law and comes into effect on January 1.
Commercial and industrial vehicles and vehicles imported by the Government will not be affected, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube announced in a statutory instrument gazetted yesterday.
The surcharge is between 30 and 50 percent, rising with value, over and above the duties already imposed on these vehicles.
The measures are contained in Statutory Instrument 239A of 2023 published in an extraordinary Government Gazette on Wednesday in terms of the Customs and Excise Act and may be cited as the Customs and Excise (Surcharge) Notice, 2023.
According the SI vehicles with a free-on-board value of between US$120 000 and US$300 000 will pay a surcharge of 30 percent, while those valued at US$300 001 to US$700 000 will be taxed at 40 percent, while those above US$700 000 will pay 50 percent of the value.
The free-on-board value is the landed cost of the new vehicle.
The new SI will repeal Statutory Instrument 87 of 2023 which prescribed a surcharge of 30 percent on vehicles valued at US$120 000 or more which shall cease to apply on December 3.
In the 2024 National Budget proposals recently presented by Prof Ncube, the Government is seeking to introduce a number of taxes, particularly targeting the countries wealthier citizens as it seeks to raise funds to finance various projects and programmes.
Some of the other proposed taxes for the forthcoming fiscal year are still being debated in Parliament as they require changes in the finance acts, rather than just subsidiary legislation as was the case with the luxury car duty.
For feedback and comments, please contact ZiMetro News on WhatsApp: +27 82 836 5828.
