In this submission, SAIT expresses concern over the exclusion of hybrid vehicles from the tax incentive proposed under Section 12V for battery electric and hydrogen-powered vehicles, highlighting a contradiction between the National Treasury’s response to the 2024 Draft Tax Bills and commitments made during the President’s address at SA Auto Week. The draft legislation limits incentives to Zero Emission Vehicles (ZEVs), while plug-in hybrid and hybrid vehicles are excluded on the basis that existing support is available through the APDP2 programme. However, the NAAMSA media statement—cited in the submission—indicates that hybrids were expected to be part of the incentive strategy. SAIT argues that all New Energy Vehicles (NEVs), including hybrids, should be included in the Section 12V framework to ensure policy coherence, support South Africa’s decarbonisation goals, and maintain the country’s competitiveness in the global automotive supply chain.
