Posts Tagged ‘Environment’

A couple of weeks ago, I wrote about the impending implementation of the carbon emissions tax — or green tax, as it has become known.

Well, there is good news, and there’s bad news.

The good news is for those of us considering purchasing new double cab 4×4′s.  It seems that the tax on double cabs has been postponed — this is according to the Minister of Finance Pravin Gordhan.

The bad news is for the rest of us — those of us with older vehicles. Initially the tax will be applied to new vehicles sold in South Africa but Government is considering implementing the carbon dioxide (CO₂) vehicle emission tax on ALL cars, both new and old.

Speaking in the National Assembly on the Taxation Laws Amendment Bill and related legislation, he said this would be implemented by reviewing the approach to vehicle licence fees implemented by the provinces.

As public transport was improved, higher fuel levies could also be imposed and “we can also demand better quality of fuel” than was  available in South Africa at present.

“All in all there is a place for all these mechanisms if we want to reduce the emission of greenhouse gases and ensure we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change.”

Gordhan said he had recently met with the CEOs of South Africa’s largest vehicle manufacturers.  He had confirmed to them that the CO₂ emission tax on new passenger vehicles would come into effect on September 1.

However, he had also taken into account some of their concerns, and therefore, the CO₂ tax on double-cab bakkies would be delayed slightly and come into effect on an agreed date “in a few months time”.

“It is the intention that this tax will be extended to all other light commercial vehicles at a later date,” he said.

Editors note:

So we can expect our annual licence fees to increase substantially in future, that is if you have an older vehicle which has not been subject to the CO2 tax from 1 September.   I think this is fair enough, after all, surely it is the older vehicles that are emitting more CO2 into the atmosphere than new vehicles?

However, it makes me wonder how owners of new vehicles, purchased after 1 September, will be taxed when it comes to the annual licensing of the vehicle. If they have already been taxed when purchasing the new vehicle, surely they won’t be taxed again when it comes to renewing the annual license?

And lastly, I find it unfair to be taxing those who drive diesel vehicles, based on the amount of CO2 emissions, since in many cases they are limited by the quality of the diesel available in this country.

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