Although Finance Minister Pravin Gordhan’s 2016 Budget included personal income tax relief of R5.5 billion for lower- and middle-income earners, motorists will feel the brunt of a 30c/L fuel levy hike, a new tyre tax as well as an increase in CO2 emissions tax.

Consumers would have been relieved that personal income tax brackets have only been partially adjusted to compensate for inflation, that monthly medical tax credit allowances were upped and that there was no hike in VAT, at least not for the immediate future.

However, although ongoing oil price weakness and marginal improvements in the Rand/Dollar exchange rate will see reductions in fuel prices in March 2016, there will be an increase of 30c/L in the general fuel levy to R2.85/L for petrol and R2.70/L for diesel on April 6 2016. The Road Accident Fund levy will stay the same on R1.54/L.

What’s more, a new tyre levy of R2.30/kg per tyre will take effect on October 1 2016 for the purposes of financing recycling programmes, which, although it will benefit the environment, which is laudable, will further drive up the cost of vehicle ownership.

Not only will it be more expensive to fit your vehicle with a new set of tyres, but in terms of replacing a vehicle, new vehicle prices, which are already expected to increase by up to 20% in a little over a year due to the Rand’s weak exchange rate, will be further affected by a hike in the government’s carbon dioxide emissions tax.

The rate will increase from R90 to R100 for every gramabove 120g/km for passenger vehicles, and from R125 to R140 for double cabs.

Given the recent interest rate hike and the impact of Budget 2016’s fuel and tyre levies and higher taxation on vehicles’ carbon emissions, the only way to reduce the running costs of a vehicle is by saving fuel.

Want to save on fuel? Consider this…

Most Fuel Efficient Carsin South Africa

Fuel Efficient Driving Techniques

For more detail on Minister Gordhan’s 2016 Budget Speech, click here.