Business · South Africa
South Africa May Change Car Taxes to Lower Vehicle Prices
Moneyweb · 2026/01/28
Summary
The Department of Trade, Industry and Competition (the dtic) in South Africa is thinking about changing the way car taxes are applied. They want to use an 'ad valorem' tax system, which means taxes would be based on the value of the car. This could help lower car prices, making vehicles more affordable for South Africans. The dtic is also looking into how to reduce the large number of imported cars in the country, which currently dominate the market. This could mean encouraging more local car production or finding better ways to balance both imported and local cars. If these changes happen, it may make buying a car less expensive and support South African car industries.
OnABudget takeaway: This could mean lower prices for new cars, helping consumers save money. Small car dealers and local manufacturers might get more support, boosting local business growth.