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Taxes on Chinese tyres may make travel costly


A BATTLE is raging over Chinese tyres flooding into South Africa, which also imports to Namibia, with importers arguing that higher duties will make travel more expensive, and local manufacturers drawing attention to widespread job losses.

Tyres imported from China are now subject to additional duties of 38,33%, according to a recent government gazette signed by the South African Revenue Service (Sars) head of legislative policy tax, customs, and excise.

This new provisional duty on tyres imported from China is the result of a preliminary dumping determination by the International Trade Administration Commission (Itac).

The commission was approached to investigate “unfairly traded” tyres from China, which are said to have undercut and crippled local manufacturers.

These tyres are being imported at “unfairly low prices”, argues the South African Tyre Manufacturers Conference (SATMC) in its application for relief from the Itac, and are causing “material injury to the local industry”.

Local tyre manufacturers want anti-dumping duties applied to Chinese imports, which, it hopes, will create better price competitiveness and give the South African sector a fighting chance to revive.

The recently announced provisional payments, welcomed by SATMC, will be in place until March 2023 while Itac continues its investigation.

But there’s fierce opposition to SATMC’s push for pricier Chinese tyres, namely from the Tyre Importers Association of South Africa (Tiasa), which has already called on the government to reverse the latest duties.

During the period under investigation by Itac – August 2020 to July 2021 – N$5,7 billion worth of tyres were imported into South Africa, with almost half coming from China.

Tyre importers argue that additional duties, which it says could range between 8% and 69%, will ultimately increase the cost of travel and transport in South Africa.

“These increases will be extremely difficult for financially constrained consumers to afford given the current inflationary climate,” said Charl de Villiers, chairperson of Tiasa, in response to the latest duties.

“The unfortunate consequence is that people will either delay replacing their tyres or trade down to illegally regrooved tyres, both exceptionally dangerous outcomes, especially as we head into the end of year holiday season.”

Taxi operators, for example, will now pay 23% more for tyres, at least a portion of which will be passed onto commuters.

– Business Insider SATaxes on Chinese tyres may make travel costly

• LUKE DANIEL

A BATTLE is raging over Chinese tyres flooding into South Africa, which also imports to Namibia, with importers arguing that higher duties will make travel more expensive, and local manufacturers drawing attention to widespread job losses.

Tyres imported from China are now subject to additional duties of 38,33%, according to a recent government gazette signed by the South African Revenue Service (Sars) head of legislative policy tax, customs, and excise.

This new provisional duty on tyres imported from China is the result of a preliminary dumping determination by the International Trade Administration Commission (Itac).

The commission was approached to investigate “unfairly traded” tyres from China, which are said to have undercut and crippled local manufacturers.

These tyres are being imported at “unfairly low prices”, argues the South African Tyre Manufacturers Conference (SATMC) in its application for relief from the Itac, and are causing “material injury to the local industry”.

Local tyre manufacturers want anti-dumping duties applied to Chinese imports, which, it hopes, will create better price competitiveness and give the South African sector a fighting chance to revive.

The recently announced provisional payments, welcomed by SATMC, will be in place until March 2023 while Itac continues its investigation.

But there’s fierce opposition to SATMC’s push for pricier Chinese tyres, namely from the Tyre Importers Association of South Africa (Tiasa), which has already called on the government to reverse the latest duties.

During the period under investigation by Itac – August 2020 to July 2021 – N$5,7 billion worth of tyres were imported into South Africa, with almost half coming from China.

Tyre importers argue that additional duties, which it says could range between 8% and 69%, will ultimately increase the cost of travel and transport in South Africa.

“These increases will be extremely difficult for financially constrained consumers to afford given the current inflationary climate,” said Charl de Villiers, chairperson of Tiasa, in response to the latest duties.

“The unfortunate consequence is that people will either delay replacing their tyres or trade down to illegally regrooved tyres, both exceptionally dangerous outcomes, especially as we head into the end of year holiday season.”

Taxi operators, for example, will now pay 23% more for tyres, at least a portion of which will be passed onto commuters.

– Business Insider SA





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