The higher excise duties to be provisionally levied on tyres imported into South Africa from China constitute “a major blow” to road safety in the country and should be reversed immediately, says the Automobile Association (AA).
The AA says it expects that already embattled consumers will balk at paying higher prices for tyres and that they will continue to use their existing tyres, even if they are in poor condition.
Last month, government announced the addition of a 38.33% excise duty on tyres imported from China. This is on top of existing excise duties of between 25% and 30%.
Tyres sold locally will now have an excise load of between 63.33% and 68.33%, says the AA.
The increase in excise duties comes after the South African Tyre Manufacturers Conference (SATMC) argued to the International Trade Administration Commission that tyres were being imported into South Africa at unfairly low prices.
This, the SATMC says, is damaging the local tyre manufacturing industry.
But the Tyre Importers Association of South Africa (TIASA) notes that even local manufacturers import up to 80% of the variety of tyre models they sell, and has questioned the rationale behind the increased taxation.
The AA says while the wrangling over the increased excise duties continues, it believes that already financially stretched consumers will, ultimately, bear the brunt of the decision.
“Increased fuel prices have seen food prices climb and have also resulted in higher private and public transport costs,” notes the association.
“Those with private transport will now have to pay more for tyres – essential safety equipment on vehicles – something we don’t believe will happen.
“Public transport providers such as buses and taxis will also either not pay the new prices, or merely pass the increases to their passengers.”
According to the Road Traffic Management Corporation, 12 541 people died on the country’s roads last year.
Human error, environmental conditions (such as poor visibility, sharp bends, wet/slippery surfaces and stray/wild animals) and vehicle factors (such as bursting or smooth tyres, poor brakes, and faulty headlights) all contributed to these deaths.
Bursting and smooth tyres accounted for 49% of deaths in the last category, says the AA.