Medium and Heavy Commercial Vehicles Automotive Investment Scheme
The dti has initiated the Medium and Heavy Commercial Vehicles Automotive Investment Scheme, a sub-component of the Automotive Investment Scheme (AIS), an incentive designed to grow and develop the automotive sector through investment in new and/or replacement models and components that will increase plant production volumes, sustain employment and/or strengthen the automotive value chain.
The Scheme provides for a non-taxable cash grant of twenty per cent (20%) of the value of qualifying investment in productive assets by medium and heavy commercial vehicle manufactures and twenty five per cent (25%) of the value of qualifying investment in productive assets by component manufactures and tooling companies for Medium and Heavy Commercial Vehicles Automotive Investment as approved by the dti.
An additional non-taxable cash grant of between five or ten per cent (5% or 10%) may be available to projects that are found to be strategic by the dti as follows:
- An additional non-taxable cash grant of five per cent (5%) of the value of qualifying investment in productive assets may be available to projects that meet the requirements
- An additional non-taxable cash grant of ten per cent (10%) of the value of qualifying investment in productive assets may be available to projects that meet the requirements.
Projects will be evaluated on the following economic benefit requirements:
- Investment in a new and/or replacement model;
- Tooling;
- Value-addition;
- Employment creation/retention;
- Increase in plant production volumes by medium and heavy commercial vehicle manufacturers;
- Increase in unit production per plant by component manufacturers;
- Strengthening of the automotive supply chain; and
- Empowerment.
The approved grant is to be disbursed over a period of three (3) years.
The programme provides investment support to medium and heavy commercial vehicle manufacturers, Medium and Heavy Commercial Vehicles Automotive Investment component manufacturers and Medium and Heavy Commercial Vehicles Automotive Investment tooling companies.
In all cases, grant payment is subject to an evaluation by the dti to determine whether the project achieved the stipulated performance requirements.
These guidelines will be effective upon approval by the Minister of Trade and Industry.
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