Rossouw emphasised the government’s financial constraints, questioning the sustainability of subsidies without clear funding sources.As South Africa advances towards embracing electric vehicle manufacturing, experts have warned taxpayers to brace themselves for potential tax hikes to offset government incentives.
“This financial incentive is a crucial step in attracting investments, fostering innovation, and driving the growth of the EV sector within South Africa.”While these incentives were expected to stimulate investment in the EV sector, concerns loomed from various experts over the financial burden shifting onto citizens and the country’s readiness.
“Incentives like tax breaks can alleviate some financial burdens for manufacturers, but there’s a possibility that taxpayers will ultimately shoulder the cost through increased taxes elsewhere to compensate,” he said. “This does not give government much space to move in terms of squeezing more tax from stretched taxpayers,” said Mathekga.