‘Green Tax’ on imported vehicles to be implemented

South Africa’s National Treasury has confirmed that they intend to go ahead with the implementation of a carbon emission tax on imported vehicles from the 1st of March 2010.

The tax will be levied at the following rates:

• 8% on vehicles emitting greenhouse gasses of 240 grams per kilometre
• 10,7% on 280 grams per kilometre
• 12% on 300 grams per kilometre
• 0% for emissions of less than 120 grams per kilometre.

These taxes will be partly offset by a reduction in the import duties of vehicles.

There is big unhappiness from the National Association of Automobile Manufacturers of SA (NAAMSA) about the tax, partly because the fuel sold in South Africa does not comply with the new technological requirements necessary to avoid the green tax.Importers are aware of this shortcoming in South Africa’s fuel and subsequently do not fit the vehicles with the latest technology.

About R40bn will have to be invested in local refineries to make production of cleaner fuel possible. Once a final decision has been taken on the issue it will take about another five years before the fuel will be available across the market.

Original article: Fin24.com on 17 January 2010. Read here…