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7 New vehicle taxes in SA (like Car with more than 400,000 km will be banned from the road)


Government to introduce new vehicle taxes to push people towards public transport include Congestion tax, Environmental levy tax , Licensing system tax , Fuel labels tax, Car life limits, Freight and Road construction

The Department of Transport has published its green Transport Strategy for 2018 – 2050, that lays out plans for new taxes, and changes to existing ones.

The strategy outlines the department’s plans for the road, rail and aviation sectors, with a spotlight on the country’s international commitments to cut back emissions.

In addition to a variety of broader ways  – like encouraging a push towards renewable energy vehicles – the document outlines some formal regulatory changes that are probably to possess an immediate impact on South African motorists.

“Road infrastructure is stricken by many factors, however most significantly environmental factors, the volume of vehicles and also the weight of the vehicles on the road,” the department said.

“All roads are built with a supposed life cycle, however with the impact of the traffic load, likewise because the environment (heat, cold, rainfall etc.) the deterioration rate is accelerated.”

Because of these challenges, the department aforementioned that it'll prepare regulatory actions targeted at encouraging the modal shift from road to rail and from private vehicle use to public transport.

To do this, the department aforementioned it'll scrutinize new taxes and levies – or make changes to this taxes and levies that are already in place.

These are made public below.


1. Congestion tax

In consultation with local government, the department aforementioned that it'll assist with ‘the development of regulatory and policy frameworks’ for levying a congestion charge on vehicles entering central business hubs.

In this case, international best practice with relevance congestion zone taxing are going to be taken into account, it said.

“Congestion zone taxing, however, would require supporting infrastructure – park and rides, integrated eco-mobility transport facilities, likewise as bike and car share scheme development.”

2. Environmental levy tax 

In consultation with stakeholders and also the National Treasury, the DoT plans to review this levels of the environmental levy on new motor vehicle co2 emissions and expand the tax to incorporate commercial vehicles to a lot of effectively influence energy potency and also the environmental performance of the country’s vehicle fleet.


3. Licensing system tax

The DoT plans to develop a ‘regulatory regime’ in consultation with National Treasury for the annual taxing of vehicles supported their emissions through the yearly car licensing renewal system.

It added that it conjointly plans to ‘enhance the regulatory regime’ to incorporate a three-yearly check on vehicles that covers worthiness and exhaust emissions.

“The check certificate can be got to be produced every 3 years of automobile licensing renewal,” it said. “The check scores are going to be used to adjudicate a price relative to safety and emissions performance.”

4. Fuel labels tax

The use of vehicle fuel economy norms and standards to label vehicles in terms of their fuel potency and emission standards can continue, the DoT aforementioned.

“Baseline studies on the implementation of a lot of stringent fuel economy standards (such as euro V) ought to cause the adoption of applicable greener standards.”


5. Car life limits 

The DoT aforementioned that it plans to introduce car lifecycle limits on the road.

While it didn't give actual details of what this can entail, it indicated that a car with an engine with over 400,000 kilometres ought to be banned from the road, or scrapped – almost like this taxi recap system.

6. Freight

In consultation with cities, the DoT aforementioned it'll assist with the event of rules to make sure that freight vehicles could only enter urban hubs throughout off-peak hours.

“Research will be conducted into the viability of re-introducing ‘road freight allows’ in South Africa with permit pricing reflective the emissions for tonne cargo of freight vehicles, likewise as road-use charges to internalise the externalities of doable overloading from freight hauliers,” it said.

7. Road construction

The DoT can develop green standards and guidelines for road construction, maintenance and upgrades.


“This can embody standards and guidelines on global climate change resilient materials,” it said.

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