SA car rental hit with new Namibian tax

THE South African car-hire
industry has been caught
unawares by the imposition
of a carbon emissions tax
by Namibia on SA-registered
vehicles bonded for rental in
that country.
The tax came into force on
July 11 and is levied at border
crossings. It affects renters
of all vehicle types, including
motorhomes.
Rebone Motsatsi, executive
commercial for Avis Budget
Southern Africa, told TNW: “We
have taken up the matter with
the Car Rental Association
of Namibia and are awaiting
feedback.” He added that the
tax would have an impact on
the cost of doing business.
Tim Bouwers, md of Bobo
Motorhomes, said there had
been no prior consultation.
“This tax is raised on all rental
vehicles that are bonded
by the rental company at
the South Africa/Namibia
border every time it is used
in Namibia for hire,” he said.
“This could mean that the
same vehicle can be charged
this carbon tax a few times
a year if it’s taken out of
Namibia to be used in SA, for
example, and then returned to
Namibia.”
The level of tax is dependent
on the carbon emission level
of the model. It is understood
that vehicles stand to be
impounded if the tax is not
paid.
Which party will bear the
cost of the tax is in question,
as is the implication for rental
rates and for Namibia, which
is a significant self-drive
destination.
Namibian rental companies
purchasing Namibian vehicles
are unlikely to suffer, as the
tax is included in the purchase
price of a new vehicle.
“South African companies are
punished for doing a good job
there,” said Tim.