The Department of Trade and Industry (DTI) recently released draft guidelines for public comment on the intended incentive. The due date for the submission of commentary to the DTI is before/on 28 September and the proposed effective date of commencement of the programme is 1 November 2012.

The objective of the new incentive will be to support people carrier manufacturers or assemblers and related automotive component manufacturers. A cash grant of between 20 percent (20%) and

35 percent (35%) of the value of qualifying investment in productive assets payable over a three year period will be available.

The incentive will be a sub-component of the existing Automotive Incentive Scheme (AIS) and is designed to stimulate a growth path for the people carrier vehicles industry through investment in new and/or replacement models and components that will result in new or retention of employment and/or strengthen the automotive value chain.

 

The full draft guidelines can be viewed on the DTI’s website: http://www.thedti.gov.za/P_AIS_publiccomment.jsp

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