Presented on the 11th of June by the Finance Minister R Padayachy, the National Budget for the year 2021-22 puts forth several measures to encourage a smooth economic recovery. Here are some of them, relating to the automotive sector.

The future is electric

For a long time, the purchase of electric vehicles was highly encouraged. The national budget now endorses electric vans for the transport of goods as well, abolishing 5% of excise duty on vans of up to 180 kilowatts (KW).

Several tax incentives have been mentioned as well for public transportation. While subsidies and tax incentives for the purchase of diesel buses are being phased out, subsidies for the purchase of electric ones are being increased from Rs 1 million to Rs 1.2 million.

Furthermore, to the great pleasure of electric vehicle owners, the new budget encourages the installation of photovoltaic panels for charging… A green initiative that must not exceed 10KW in capacity. 

 The rebate scheme is not over 

Great news for car dealers! Indeed, the excise duty rebate scheme on motor vehicles has been very helpful to stakeholders of the automobile industry. While it was supposed to end by June 2021, the initiative has been extended for another year. Until the 30th of June 2022,

• A motor car up to 1 000 cc (whether hybrid or not) shall benefit of 40% rebate on the excise duty payable on the motor car ;
• A motor car (whether hybrid or not) above 1 000 cc, double/single space cabin vehicle and van, on the other hand, benefits of 30% rebate on the excise duty payable on the motor vehicle
  

Furthermore, a beneficiary of a duty exempted motor vehicle will be allowed to benefit from another duty exempted motor vehicle within a period of 4 years, provided that the full amount of duties and taxes exempted on the vehicle is fully reimbursed.