Emission Tax Threatens Recovery

A new vehicle tax related to carbon emissions threatens to stymie the recovery in South Africa's vehicle sales, which BMI expects to grow by 16.7% in 2010 after three years of decline. The tax, due to be implemented from September 1 after six-month delay, will range from 0.6% to 4.1% depending on the level of emissions. It is the latest in a list of hurdles faced by the industry, including higher port charges, electricity prices and raw material costs.

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