Possible hike in tyre prices latest cost of living headache
Cash-strapped motorists and taxi operators will fork out more for tyres should an application by the country's four largest domestic manufacturers get the green light.
Continental, Bridgestone, Goodyear and Sumitomo - collectively known as the SA Tyre Manufacturers Conference have applied to the International Trade Administration Commission for new duties to be imposed on tyres imported from China.
Charl de Villiers, who is the chairperson of the Tyre Importers Association of South Africa, says if the manufacturers' application is approved it will see the cost of transport and goods will skyrocket.
"These duties span across eight different tariff codes and the percentages they are asking for range between 8.45% and 69.97%.
"I must stress at this point that this is on top of the already 25% to 3% duties we are paying for the normal imports."
De Villiers says taxi operators will be worst affected with a possible increase of 41% in the cost of tyres.
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Theo Malele from the National Taxi Alliance says it could see some drivers using sub-par tyres and impacting safety on roads.
"We strongly opposed to this. We cannot afford this as a taxi industry, neither can we afford it as a country. It is difficult as we speak. I really don't know how further we can stretch our rand, which is already stretched to it's limits."
CEO of the Road Freight Association Gavin Kelly says it will have a ripple impact on the economy.
"That is going to filter into the cost of moving products in South Africa, whether we like it or not.
Transporters cannot absorb that cost just like a taxi operator cannot absorb that cost so, you can I will start to pay more for whatever is moved by road - 80% of goods are moved by road. It is going to have a detrimental impact on our economy, cost of goods and the cost of living."
