That Green Tax issue… again
A couple of weeks ago, I wrote about the impending implementation of the carbon emissions tax — or green tax, as it has become known.
Well, there is good news, and there’s bad news.
The good news is for those of us considering purchasing new double cab 4×4′s. It seems that the tax on double cabs has been postponed — this is according to the Minister of Finance Pravin Gordhan.
The bad news is for the rest of us — those of us with older vehicles. Initially the tax will be applied to new vehicles sold in South Africa but Government is considering implementing the carbon dioxide (CO2) vehicle emission tax on ALL cars, both new and old.
Speaking in the National Assembly on the Taxation Laws Amendment Bill and related legislation, he said this would be implemented by reviewing the approach to vehicle licence fees implemented by the provinces.
As public transport was improved, higher fuel levies could also be imposed and “we can also demand better quality of fuel” than was available in South Africa at present.
“All in all there is a place for all these mechanisms if we want to reduce the emission of greenhouse gases and ensure we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change.”
Gordhan said he had recently met with the CEOs of South Africa’s largest vehicle manufacturers. He had confirmed to them that the CO2 emission tax on new passenger vehicles would come into effect on September 1.
However, he had also taken into account some of their concerns, and therefore, the CO2 tax on double-cab bakkies would be delayed slightly and come into effect on an agreed date “in a few months time”.
“It is the intention that this tax will be extended to all other light commercial vehicles at a later date,” he said.
Editors note:
So we can expect our annual licence fees to increase substantially in future, that is if you have an older vehicle which has not been subject to the CO2 tax from 1 September. I think this is fair enough, after all, surely it is the older vehicles that are emitting more CO2 into the atmosphere than new vehicles?
However, it makes me wonder how owners of new vehicles, purchased after 1 September, will be taxed when it comes to the annual licensing of the vehicle. If they have already been taxed when purchasing the new vehicle, surely they won’t be taxed again when it comes to renewing the annual license?
And lastly, I find it unfair to be taxing those who drive diesel vehicles, based on the amount of CO2 emissions, since in many cases they are limited by the quality of the diesel available in this country.
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Theft of 4×4′s and other vehicles is about to become less profitable
I’m sure you’ve read reports about the increasing numbers of stolen 4×4′s, particularly the Toyota Fortuner as well as Toyota Hiluxes. 
Just recently, here at 4×4-insurance.co.za we posted a warning about these 4×4 thefts and suggested some practical ways in which owners of the affected vehicles could reduce the risk of becoming another 4×4 theft statistic.
For South African 4×4 owners, the future may seem a little brighter now as new technology to recover stolen cars makes its way into the market.
Microdots, which are smaller than 1mm, are laser-printed dots that are superimposed across the body of the car and contain vital vehicle information that can be used to determine if a vehicle is stolen or not.
We support the Business Against Crime South Africa (BACSA) initiative to get the microdot technology rolled out across the country in an attempt to curb the alarming number of hijackings and vehicle thefts. insurance premiums are likely to decrease if we are able to reduce the number of thefts and hijackings of 4×4′s in South Africa.
Theft of vehicles is big business in South Africa. Statistics reveal more than 90 000 vehicles worth more than R9-billion are stolen every year.
BCSA’s Microdot project manager, Fouche Burger, told SA-The Good News that the crime-fighting organization is waiting for the government to approve the legislation authorising the use of Microdots by every vehicle manufacturer.
Burger says it won’t be long before police will start using the technology to identify stolen vehicles at road blocks. The microdots are too small to see with the naked eye, and can be identified by police when examining stolen cars using magnifying glasses and specialised equipment to see the microdots. And the South African Police Service (SAPS) has announced that Microdots will shortly be compulsory for all new vehicles registered.
Already being used
As of 31 May 2009 over 370 000 vehicles in the country where microdotted by the following companies: Nissan, BMW, Avis Rent-a-Car, Toyota (on the Quantum minibus), SAPS, SAVRALA and Vesa, Burger revealed.
How does it work?
The process involves the application of approximately 10 000 tiny polyester or metal dots, each less than 1 mm in diameter and each containing the vehicle’s identification number (VIN) or a unique vehicle PIN etched onto it by a laser-etching process, as repeated lines of text.
The microdots are applied to 88 different locations on a vehicle. Discovering and removing all of them is practically impossible and any attempt to remove them results in the car’s body being severely damaged.
It also helps that the technology used to identify microdots is cheap and easily available, said Deborah Hunt, Media Liaison at BACSA. “Police can use a low-tech magnifying glass, which is cost effective”.
International statistics indicate that Microdot technology leads to a decrease of between 50 and 60 percent in the number of stolen and hijacked vehicles and an improvement of more than 55 percent in recoveries.
It is common knowledge that many of the stolen and hijacked 4×4′s are dismantled in chop shops and the parts sold as second-hand. Microdots can be used in recovering components sold as used parts and this will certainly be a deterrent for hijackings and motor vehicle theft.
Related articles:
- Off-Color Cars Offer Effective Theft Prevention [Theft] (lifehacker.com)
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A new Double Cab 4×4 will soon be more expensive
Thanks to our government and the proposed new carbon emissions tax, that new 4×4 double cab is going to cost you even more. Up to R20,000 more!
Here’s the latest on governments’ plan to increase their revenue by taxing us again and again.
“Treasury said on Tuesday that it has always intended to include double cab vehicles in the first phase of the implementation of the CO2 vehicle emissions tax. This is in line with the intent of the VAT Act and the fact that double cabs are mainly used as passenger vehicles.
“Including double cabs in the CO2 vehicle emissions tax net is also in line with the original intent of this proposed tax: the taxation high engine capacity vehicles to discourage the use of vehicles are not fuel efficient and encourage the shift to the more fuel efficient ones,” the Treasury said.”
As if the motor industry wasn’t under enough pressure! It has barely recovered from the recession, which saw hundreds of dealers closing their doors, leaving thousands of people unemployed.
The motor industry argues that double cabs are classified as light commercial vehicles, and should therefore be excluded from the Carbon (CO2) Emissions Tax.
But Treasury insists that the since single cabs and double cabs have similar engine sizes, they should be treated the same when it comes to the Carbon Emissions Tax.
Let’s face it our environment is precious and it’s vitally important that we look after it. If the funds generated by this carbon emissions tax were to be used to fund sustainable energy such as wind power generation, I would have no problem with that. I may be cynical, but it is my opinion that this is merely an attempt by government to make up for the taxes that they have lost in other areas due to the recession and the worldwide economic downturn.
There’s not much that one can do, I guess. If you want the double cab it is going to cost you more from September. Maybe it’s a good time to buy now?
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4×4 stuck? How to use a kinetic strap
Recovering your 4×4 safely from mud, soft sand, or any similar situation is not as easy as you may think.
Using the proper equipment, in the right way makes the recovery easier, as well as safer.
Here is a video showing exactly how to use kinetic straps (aka snatch straps) properly, when recovering your stuck 4×4.
Third Party Insurance to become compulsory
Government recently announced plans to make third party insurance compulsory for all South African drivers. When this will materialise – nobody knows for sure, but the theory is a very sound one indeed.
Currently, it is estimated that of the 9.5 million vehicles on South African roads, only 35% are insured! That’s a scary statistic.
At this stage, approximately 70 to 80% of motor claims are as a result of accidents.
Here is a typical scenario:
- Driver A (who is not insured) drives into the back of Client B’s vehicle (who is insured).
- Client B claims from his insurer, who repairs his car.
- B’s insurer, tries to recover his losses, only to find out that Driver A is not insured, or is unemployed, or lives in a squatter camp with nearly no earthly possessions and so Client B’s insurer gives up on trying to recover his losses.
The nett result? Insurance premiums increase.
Who pays? Client B (along with all those other 34.99 % of vehicle owners who diligently pay their insurance premiums every month).
The situation will be much better if more vehicles are insured, as the burden will be less on insurers who, at this stage, are carrying more than their fair share. Motor insurance premiums should decrease, and the sustainability of the insurance and even the motor industries will improve.
The idea is great, and well overdue too. It’s a step in the right direction by our Government and Department of Transport.
The BIG questions are…
1) Who will administer the compulsory Third Party Insurance scheme?
and
2) How will it be implemented?
4×4 Insurance warning: Toyota Hilux & Fortuner owners beware
Below is a warning we have just received from one of our specialized 4×4 insurance underwriters. If you own a Toyota Hilux or Fortuner, we suggest you take careful and serious note of this.
“We have experienced a significant increase in the number of stolen and hijacked Toyota Fortuner and Hilux vehicles. We have established that criminals have developed a simple means of disarming the vehicle as they know where the siren is installed and are able to disconnect the siren without setting off the alarm.
Our recommendation is a visit to the nearest Toyota dealer to discuss perhaps having the alarm moved, which will significantly reduce the risk.”
“What must I do?”
Besides the advice above, here is what we suggest you do to ensure your 4×4 insurance remains valid, and your claims get paid without any hassles:
- First and foremost: Make sure you know what the security requirement is on your policy. Is a factory fitted immobiliser acceptable, or should you have a tracking system installed?
- If your vehicle is supposed to have a tracking system installed, ensure that you comply with the requirement immediately.
- Remember, not all vehicle tracking systems are created equal. Your insurer may have a list of approved tracking systems. Make sure you have the correct system installed.
- Test your tracking system regularly. Many of the newer systems have a self-test facility, but I wouldn’t rely on that alone. Make sure that the tracking system is communicating with the call centre by calling your service provider and asking them to ensure that they can find your vehicle’s signal.
If you need a tracking system, speak to us first. We can arrange the fitment of all leading tracking systems for you.
Is the new “cheap” Prado worth it?
Prado TX
In recent months Toyota have launched a downscaled version of the Prado – the TX version. The differences between the VX and TX models are mainly in the specs.
Mechanically, both models are powered either by a 24-valve 4.0-litre V6 petrol or a 3.0-litre 4 cylinder turbo diesel and have a 5 speed automatic transmission.
It comes with Brake Assist, Electronic Brake force Distribution (EBD), Vehicle Stability Control (VSC), Hill-start Control and Downhill Assist. Obviously it comes with driver and passenger front airbags, as well as driver knee airbag and side airbags. There are also full length curtain side airbags for all three rows of seats.
The difference in price is about R90’000. In my opinion, when you’re spending close on R600’000 on a vehicle anyway, you might as well go all the way. What do you think? Is the cheaper version worth the saving?
Our clients seem to feel that it’s best to go all the way, if you can afford it, of course. In the past week alone we have insured 2 new Prado VX’s, and both owners reckon they considered the TX but eventually decided on the VX. When it comes to 4×4 insurance, it makes sense to get the best cover available, whether you have a VX or a TX, get proper 4×4 insurance from us.
Take care when travelling to Mozambique
I guess we can never be too careful – travelling through and holidaying anywhere in Africa comes with a range of challenges, of which crime is always on the list. Travelling in convoy lowers the risks on the road, but how do you protect yourself inside a resort? Let me know if you have any ideas or security gadgets that you use by making a comment below the article.
Mozambique to discuss safety of SA tourists
This story from News24.com
Inhambane Map
Maputo – Mozambican authorities were expected to meet on Tuesday in Inhambane to discuss tourism safety measures after several attacks on South Africans in the country, a tourism organisation said on Monday.
“Following the recent attacks and robbery of visiting tourists in [the] Inhambane province, his excellency, the governor of Inhambane has called an urgent meeting with all tourism operators,” said the Inhambane Tourism Association.
“We demand that something should be done,” the association’s president Erwin Jakes said.
“This is happening all over. This is nothing new. But it’s new to us, the tourist industry.”
The Inhambane province in southern Mozambique is a popular holiday spot for South Africans with its breathtaking scenery, with diving and surfing opportunities. Many South African tourism agencies also operate in the region.
South African Leon Scott, 51, and his family were attacked and robbed early on Sunday morning while on holiday at a resort in Morrumbene near Inhambane city, The Mercury newspaper reported on Monday.
Two armed men tied up Scott, his wife Vanetia, 44, their two young daughters and two nephews, Victor Khan, 22, and Bevil Mellem, 34.
They also tied up another South African couple and their two daughters, the resort’s South African manager and his wife, workers and security guards. They stole an undisclosed amount of cash, electronic equipment, and a Toyota Land Cruiser. Police later found the car abandoned some distance from Morrumbene.
Last Monday another group of three families were attacked, assaulted and a woman raped in Chissibuca near Xai-Xai, Die Burger newspaper reported.
The modus operandi of the gangs was similar. The men were, however, separated from the women and locked in a bathroom, where the robbers tried to poison them with gas. They then raped one of the women and attempted to rape another.
- SAPA
Another reason why You need REAL 4×4 insurance
Here is another reason why you should have real 4×4 insurance! This incident was reported on in The Ombudsman’s Briefcase: Official Newsletter of the Office for Short-term Insurance (OSTI) December 2009.
In August 2008 the insured ran into trouble while crossing a drift on a dedicated 4×4 route on a farm.
His vehicle stalled some distance into the water – which was reportedly 75cm deep – and had to be towed to a place of repair.
A claim was lodged with the insurer to cover the cost of repairing the engine (which had seized) and water damage to the vehicle interior. “The insurer rejected liability of the insured’s claim for damage to the vehicle on the grounds that the insured had failed to exercise due care and precaution to prevent loss or damage,” reports OSTI. Was the insured’s behaviour ‘reckless’ as alleged by the insurer? And did he ‘wilfully’ expose the vehicle to circumstances that could cause damage?
The OSTI says the insured had been on a number of specialised 4×4 driving training courses since 1998. At the time the incident occurred the insured was traveling in convoy with a friend who drove an identical vehicle. And both drivers carefully inspected the drift before concluding it could be “easily traversed.” The insured also took additional steps to traverse the obstacle safely, by setting his vehicles suspension as high as possible.
Although the client in the article did eventually get his claim paid, it would have taken many weeks and probably months of arguing with the insurer and explananing the situation to the ombudsman.
It would have been far smarter, I reckon, to have a proper 4×4 policy from the start. One that specifically covers water damage. Real 4×4 insurers know what real 4×4 drivers do. And real 4×4 insurers are most unlikely to go around rejecting water damage claims based on the idea that the driver was reckless and negligent by driving through water that he (an experienced 4×4 driver) had carefully inspected prior to crossing.
Read the rest of the article here on FA News.
A serious 4×4 recovery
Check out this serious 4×4 recovery of a 12 Ton truck at Kubu Island, Botswana
