What Happened
Ahead of the South Africa 2026 Budget Speech, the Zero Carbon Charge (CHARGE) has urged Finance Minister Enoch Godongwana to align import duties on electric vehicles (EVs) with those applied to internal combustion engine (ICE) vehicles. Currently, EVs face a 25% customs duty, compared to 18% for petrol and diesel vehicles imported from the EU. CHARGE advocates for the removal of the ad valorem tax on EVs and the establishment of dedicated funding for off-grid, solar-powered EV charging infrastructure across the nation.
Why It Matters
The high import duties and taxes have significantly limited the availability of affordable electric vehicles in South Africa. Most vehicles available in the market are premium models priced over R1 million, creating a barrier for average consumers. CHARGE highlights that reducing import duties could lower prices and increase the adoption of EVs, similar to initiatives taken by other African nations like Ethiopia and Rwanda, which have successfully reduced or eliminated import duties on battery electric vehicles (BEVs).
What’s Next
As the government prepares for the budget speech, stakeholders are keenly watching for any policy changes that could facilitate the growth of the EV market. If import duties are adjusted, it could lead to a more competitive pricing landscape for electric vehicles, potentially transforming the automotive market in South Africa. The outcome of these discussions will be critical for the future of sustainable transport in the country.
