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HomeNewsCar-emission tax hiked in South Africa – Here’s how much more you’ll have to pay

Car-emission tax hiked in South Africa – Here’s how much more you’ll have to pay

On 1 April 2024, emission taxes for passenger vehicles in South Africa increased by 10.6%, from R132 per gram of CO2 emissions per kilometer to R146 per gram.

For double-cab bakkies, the tax rose by a fractionally higher 10.8%, from R176 to R195 per gram.

While these rates were hiked, the tax threshold – which is the maximum level of emissions allowed before levies are applicable – remains unchanged at 95g/km and 175g/km, respectively.

The increases are part of treasury’s annual review of sustainability and energy measures intended to support South Africa’s green transition, said Finance Minister Enoch Godongwana in his 2024 Budget Review.

Before vs After

Emissions tax represents an estimate of how much carbon dioxide (CO2) a car will emit over its typical lifespan and is added to the purchase price of the vehicle and paid for by you, the consumer.

According to our friends over at Duoporta vehicle information specialists, this is how the CO2 levy is calculated depending on the type of vehicle:

  • Passenger cars – ([g/km]-95) x (R146+VAT)
  • Double cabs – ([g/km]-175) x (R195+VAT)

To see the real impact that these increases will have on the emission-based tax of a new car in South Africa, we applied the calculation to several of the best-selling rides in the country.

This can be seen below:

Vehicle CO2 emissions CO2 tax March 2024 CO2 tax April 2024 Difference
Chery Tiggo 4 Pro 1.5 Manual 167g/km R10,929.60 R12,088.80 +R1,159.20
Ford Ranger 2.0 BiTurbo 4×2 Auto 188g/km R2,631.20 R2,915.25 +R284.05
Haval H6 2.0GDIT FWD 169g/km R11,233.20 R12,424.60 +R1,191.40
Hyundai Grand i10 1.0 Manual 130g/km R5,313.00 R5,876.50 +R563.50
Isuzu D-Max 3.0TD 4×2 Auto 208g/km R6,679.20 R7,400.25 +R721.05
Kia Sonet 1.5 Manual 160g/km R9,867.00 R10,913.50 +R1,046.50
Suzuki Swift 1.2 116g/km R3,187.80 R3,525.90 +R338.10
Toyota Corolla Cross 1.8 154g/km R8,956.20 R9,906.10 +R949.90
Toyota Hilux 2.8GD-6 4×2 Auto 195g/km R4,048.00 R4,485.00 +R437.00
VW Polo Vivo 1.4 55kW 132g/km R5,616.60 R6,212.30 +R595.70

It should be noted that not all automakers will adjust the costs of their vehicles to the same degree. Some may absorb the higher taxes completely to keep their prices competitive, while others will only push them up by a few hundred or thousand rands.

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