Your tyres could be costing more than you think
Your tyres could be costing you more than you think: the new tyre tax in South Africa. Tyres is an essential part of every vehicle, but they can also be a significant expense. The International Trade Administration Commission (ITAC) has just announced new duties on imported tires that will increase their cost by an additional 38%. This is in addition to the existing 25-30% rates, making it hard for companies who depend heavily upon these products.
The Tyre Importers Association of South Africa (TIASA) is warning that the latest duties on tires will push overall cost up to near 70%. This increase comes at a time when citizens can ill afford these price hikes, with many struggling just for enough money in their day-to-day lives.
The provisional duties, which are another tax that consumers and businesses will have to bear, are effective immediately. It means that taxi operators will now pay 23% more for tyres, truck and logistics providers 22% more – higher than applied for – and passenger vehicle owners will now have to outlay between 21 – 25% more for tyres.
The four major tyre manufacturers in South Africa have applied to ITAC for the reimposition of substantial additional duties on passenger, taxi and bus vehicle tires imported from China.
The announced increase in Import Duty on Tyres will have a significant impact on the transport and logistics sector, as well as all other industries that rely upon it. The price for essential supplies like food will likely skyrocket due to these new duties; this could lead us back into another recession if not handled correctly!
It’s estimated that there are around 30 million used tyres in South Africa, and only 10% of them are currently being recycled. The new tyre duties will obviously result in an increase in the price of tyres, which could potentially put a strain on already-tight household budgets. In addition, the tax will also likely lead to an increase in prices for other vehicle components such as rims and wheels, as manufacturers pass on the increased cost of tyres to consumers. However, it’s important to remember that tyres are a vital part of your vehicle, and they play a crucial role in keeping you safe on the road. So, while the new tyre prices may be an additional expense, it’s important to make sure that you’re always driving on tyres that are in good condition.