South African consumers would start paying carbon dioxide (CO₂) emissions tax on new double-cab pick-ups in the first half of next year, with the implementation of the tax on single-cab pick-ups delayed indefinitely.

It is understood that the delay in the implementation of the tax on the sale of new double-cab vehicles served to allow the local automotive industry to conduct testing on these vehicles to determine their level of CO₂ emissions.

It also anticipated that the level at which the CO₂ tax would kick in for double-cabs would be significantly higher than the 120 g/km which would be applied for passenger cars, tracking developments in Europe.

The CO₂ tax regime comes into effect on all new passenger cars as from September 1. New minibus taxis would be exempt from the tax.

The CO₂ tax was expected to earn the national fiscus an estimated R450-million in the 2010/11 financial year. Cars would be taxed, based on their certified CO₂ emissions, at R75 a g/km for each g/km above 120 g/km, adding around 2% to 3% to the price tag of a car.

The movement regarding the application of the tax regime to double-cab pick-ups followed a protracted tussle between the local industry, which believed pick-ups should be exempt from the tax altogether, and the Treasury, which believed otherwise.

Following a series of meetings between the groups, Finance Minister Pravin Gordhan announced on Tuesday that the CO₂ tax on double-cabs 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.

However, he added that government was now also considering implementing a CO₂ tax on used cars.

Associated Motor Holdings (AMH) CEO Manny de Canha on Wednesday confirmed the movement regarding the implementation of the CO₂ tax on double-cab pick-ups.

He said that he understood that the threshold at which the tax would kick in for these vehicles would be increased to 175 g/km, and that it would be implemented on April 1.

De Canha was critical of a move to possibly include used cars in the tax regime, as he said it would be nearly impossible to measure the emission levels of vehicles older than two or three years.

"It can only really work if the vehicle is a year or so old."

AMH imported the Kia, Hyundai, Bentley, Chery, Zotye, Foton and Daihatsu brands into South Africa.