Johannesburg - The higher excise duties that were being imposed on tyres in South Africa would make the country’s roads even more dangerous, the Automobile Association said.
The association predicts that many consumers, who are already bombarded with inflation from all angles, will opt to continue using tyres that are in a poor condition because they cannot afford new tyres.
The government earlier this month announced an additional 38.33% excise duty that will apply to tyres imported from China. This is on top of existing excise duties of between 25% and 30%. This means that imported tyres will now have an excise loading of between 63.33% and 68.33%, the AA says.
The duty increase came after the SA Tyre Manufacturers Conference argued to the International Trade Administration Commission that tyres were being imported into the country at “unfairly low prices”, thereby jeopardising the local tyre manufacturing industry.
The SA Tyre Importers Association is however questioning the rationale behind the increased taxation as even the local tyre manufacturers import up to 80% of their tyre products.
Ultimately it’s the consumers who would bear the brunt of this wrangling over prices and duties, the AA said.
“Increased fuel prices have seen food prices climb and resulted in higher private and public transport costs. Those with private transport will now have to pay more for tyres – essential safety equipment on vehicles – something we don’t believe will happen. Public transport providers such as buses and taxis will either not pay the new prices or merely pass the increases to their passengers. Both options are unacceptable,” the association said.
As many as 12 541 people died on South Africa’s roads in 2021. According to the AA, human error, environmental conditions (such as weather-related hazards), and vehicle factors such as bursting or smooth tyres, poor brakes, and faulty headlights contributed to these deaths. Bursting and smooth tyres contributed to 49% of deaths in this category, by far the biggest element in terms of vehicle factors causing road deaths.
“Tyres are critical pieces of safety equipment, and we always advise motorists to have them checked regularly and replaced if needed. Of course, we also advise motorists to budget for this expense as part of their overall vehicle ownership. But the reality is that the new prices will significantly increase the replacement cost of tyres, forcing many motorists to drive on tyres they should not. The incidents of bursting tyres, we believe, will increase sharply because of this,” the AA said.
Public transport users were also at risk, the association added.
“Operators not wanting to spend the extra money on new tyres will continue to drive with poor-condition tyres, or use inferior ‘refurbished’ tyres, putting the lives of their passengers and other road users at risk. The increased prices of tyres are, simply put, going to create major road safety problems in future.”
The AA said it supported calls from organisations such as TIASA that the decision to add the extra excise duties be reversed.