The SA Institute of Professional Accountants (Saipa) has applauded and welcomed the government’s ruling to reduce the rise in company car tax that was announced in February.

Saipa’s Tax Technical, Sub Commite Chairman, Ettiene Retief, said: "However, people should still brace themselves for considerably reduced take-home pay from March 2011.”

The original figures would have meant that company car tax would be as high as 82.4 per cent. It would have been a financial nightmare for consumers, and it is seen as welcome news in the country that has just hosted the World Cup.