On 30 June 2017, [List 7/2017] Itac annouced the proposed amendment of Rebate Items 460.17/87.00/04.02, 460.17/87.03/02.04, 630.20 and 630.22 of the Act to reduce the period within which a vehicle may not be offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of, on which comment is due by 30 July 2017.
The proposed amendment of the Rebate Items is for the insertion of ‘3 years’, ‘…if such a motor vehicle is offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 3 years from the date of entry under this rebate item, such foregoing acts shall render such vehicle liable to the payment of duty on a pro rata basis’.
The application was lodged by National Council for Persons with Physical Disabilities in South Africa that (i) There are limitations to the governing legislation as persons with physical disabilities are required to keep the vehicles for a period of five years prior to buying a new vehicle. This is not aligned to the maximum three-year warranty period, service plan and maintenance plan which most dealers offer on new vehicles; and (ii) It becomes very expensive to maintain motor vehicles outside the maintenance plan, service plan and warranty due to increasing cost of maintenance.
Provided that:
(b) if such a motor vehicle is offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 3 years from the date of entry under this rebate item, such foregoing acts shall render such vehicle liable to the payment of duty on a PRO RATA basis”. Schedule 4: Rebate item 460.17/87.03/02.04 (b) and (d)
Motor cars and other motor vehicles, principally designed for the transport of persons, including station wagons (excluding racing cars), adapted or to be adapted to be driven solely by a physically disabled person at such times and under such conditions as the International Trade Administration Commission after consultation with the National Council for Persons with Physical Disabilities in South Africa, may allow by specific permit.
(b) “Such permit may not be issued within a period of 3 years of the issue of the previous permit to such disabled person”;
(d) if such vehicle is offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 3 years from the date of entry in terms of this item, such foregoing acts shall render such vehicle liable to the payment of duty on a PRO RATA basis.”
Schedule 6; Rebate item 630.20 (b)
Motor vehicles principally designed for the transport of physically disabled persons, including station wagons (excluding racing cars), adapted or to be adapted to be used for the transport of physically disabled persons at such times and under such conditions as the Commissioner, after consultation with the National Council for Persons with Physical Disabilities in South Africa, may allow by specific permit:
Provided that –
(b) if such motor vehicle is offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 3 years from the date of entry under this rebate item, such foregoing acts shall render such vehicle liable to the payment of duty on a pro rata basis.
Schedule 6; Rebate item 630.22 (b) and (d)
Motor cars and other motor vehicles, principally designed for the transport of persons, including station wagons (excluding racing cars), adapted or to be adapted to be driven solely by a physically disabled person at such times and under such conditions as the Commissioner, after consultation with the National Council for Persons with Physical Disabilities in South Africa, may allow by specific permit:
Provided that:
(b) such permit may not be issued within a period of 3 years of the issue of a previous permit to such disabled person;
(d) if such vehicle is offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 3 years from the date of entry under this rebate item, such foregoing acts shall render such vehicle liable to the payment of duty on a pro rata basis
The application was lodged by National Council for Persons with Physical Disabilities in South Africa that (i) There are limitations to the governing legislation as persons with physical disabilities are required to keep the vehicles for the period of five years prior to buying a new vehicle. This is not aligned to the maximum three-year warranty period, service plan and maintenance plan which most dealers offer on new vehicles; and (ii) It becomes very expensive to maintain motor vehicles outside the maintenance plan, service plan and warranty due to increasing cost of maintenance.
