Developments in the South African automotive industry creating optimism for manufacturing sector
By Prenisha Martin, Advanced Associate, Tax Practice, Baker McKenzie Johannesburg
The amended Automotive Production Development Programme (APDP) regulations, legislated in Schedule No.3 of the Customs and Excise Act, were released by the South African Revenue Service (SARS) just over a year ago, on 5 February 2021. The APDP is essentially South Africa’s long-term masterplan to grow the automotive industry. The production incentive scheme is aimed at creating an environment that enables registered light motor vehicle manufacturers to significantly grow production volumes and component manufacturers to substantially grow value addition in South Africa.
Over the course of the last year, automotive manufacturers in South Africa have adopted a proactive approach to the new APDP regulations by...