MISA criticises proposed 50 percent tariff on Chinese and Indian vehicles
Automotive union, MISA, has slammed the government’s reported plan to impose a 50% tariff on Chinese and Indian vehicles
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Automotive union, MISA, has slammed the government’s reported plan to impose a 50% tariff on Chinese and Indian vehicles, saying it could undermine a retail sector that is finally bouncing back.
IOL previously reported that South Africa may soon impose higher tariffs on imported cars from India and China as local manufacturers struggle to compete and protect jobs in the domestic automotive industry.
The Department of Trade, Industry and Competition is reviewing measures, including higher import duties and excise taxes, to support the domestic automotive industry.
One other option under discussion is updating the country’s tariff schedule to align import levies with World Trade Organisation rules for most-favoured nations.
In a press briefing, MISA’s media and communications manager, Sonja Carstens, said the proposed tariffs would hurt dealerships and retail workers who have only recently seen a recovery.
"Misa has been very vocal on the issue, saying you cannot encourage local manufacturing to the detriment of another industry, and in our case, it's the retail motor industry, "Carstens said.
"We have been through a very difficult time over the last few years with dealerships, tyre manufacturers closing down, and we were in a slump as an industry, but this has changed, thanks to the influx of the Chinese and indian vehicle brands we've seen record vehicle sales".
She added that the influx of Chinese and Indian vehicles has not only boosted sales but also helped preserve jobs in the retail motor sector.
"If we start using tariffs, we are punishing the Chinese and Indian brands for importing vehicles into our country. We are saying that we are very much for local investment, we want to see them investing," Carstens said.
"The government can force that by, for instance, putting a timeframe that if you want to bring in your vehicles, we would like to see assembling vehicles at least in the next six months or start manufacturing parts locally. There are alternative measures that would not have an impact on our industry. The government would implement them."
mthobisi.nozulela@iol.co.za
IOL Business