Treasury confirmed on Thursday that the sale of new double-cab pick-ups would be subject to carbon dioxide (CO₂) emissions tax from March 1, 2011.

The emissions tax would still be introduced on new passenger cars from September 1, 2010.

Both the penalty and threshold for CO₂ tax on double cabs would be higher than for passenger cars.

New passenger cars would be taxed, based on their certified CO₂ emissions, at R75 for each g/km above 120 g/km, adding around 2% to 3% to the price tag of a car.

The Treasury said that the threshold for double cabs would be set at 175 g/km, and the tax rate at R100 for every g/km above the threshold.

The Treasury said that the delay in implementation now granted vehicle manufacturers and vehicle importers sufficient time to test and determine the CO₂ vehicle emissions of all double cabs.

The Treasury also noted that passenger cars and double cabs that did not have certified CO₂ vehicle emissions data for the purpose of taxation, would be subject to a tax based on a proxy CO2 emission calculation, based largely on engine size.

"Such a proxy tax would include a significant penalty provision."

Other light commercial vehicles, such as single cabs and light vans, would be subject to the CO₂ vehicle emissions tax at a date still to be decided, the Treasury added.

It also noted that minibus taxis were currently excluded from the CO₂ tax regime, as these vehicles were predominantly used for public transport.

"However, the position of minibus taxis will be reviewed when all other light commercial vehicles become subject to the CO₂ vehicle emissions tax."

The decision to delay the implementation of the CO₂ tax on double-cab pick-ups came as Finance Minister Pravin Gordhan met last week with the CEOs of the seven motor vehicle manufacturers in South Africa, and a delegation from Business Unity South Africa, to discuss concerns about the introduction of the tax regime in South Africa, which included the availability of emissions data on double-cab pick-ups.