Although Government intended for the levy to come into effect during the last quarter of 2015, its implementation date was delayed. In the 2016 Budget it is now proposed that the date of implementation be 1 October 2016 and that the levy will apply to all new and re-treaded pneumatic tyres. It will be inserted into the Customs and Excise Act and will be levied at a rate of R2.30/kg net, irrespective of the tyre’s previous use and irrespective of whether the tyre was imported or manufactured locally.
The levy is payable in addition to any existing customs and excise duty payable on the import or export of such tyres. The levy will replace the current fee arrangements for tyres, as regulated by the Department of Environmental Affairs.