23 March 2018 - NW453
De Freitas, Mr MS to ask the Minister of Economic Development
What incentive programmes are currently in place in respect of the importation of electric cars into the country; (2) Are there any plans regarding the high import duties; if not, why not; if so, (a) will this affect the high import duties and (b) what incentive programmes are planned?
1. South Africa does not generally incentivise the importation of goods into the economy, as policy is directed at building local industrial capacity. In terms of tariff support, the Automotive Production and Development Programme (APDP) provides an incentive for promoting local manufacturing of motor vehicles and not imports. The duty credits earned by the industry on production under the APDP can be used, among other things, to rebate import duties on electric vehicles if industry chooses to do so.
2. The existing 25% import duty on motor vehicles serves to support and encourage domestic investment and employment in the automotive industry in line with the APDP objectives. The dti is leading this area of work and will be engaging the sector in due course about prospects to localise the assembly of electric vehicles.