Friday, May 21, 2010

How Green Is Our Government ?


Regarding the carbon dioxide (CO2) vehicle emissions tax that comes into effect on September 1, various media reports indicate that the implementation system government have proposed, is fundamentally flawed.

As Carbon Dioxide is a greenhouse gas contributing to global warming, not too many people would object to highly to a green tax for the express purpose of offsetting vehicle generated carbon omissions. There are two aspects to the proposed system that has resulted in severe criticism.

Firstly, it will only affect those purchasing new vehicles. New passenger vehicles are to be taxed based on their certified CO2 emissions. The proposed rate is R75 per g/km for each g/km above 120 g/km which according to tax advisory firm Deloitte, could add between R5 000 and R10 000 to the cost of the average new passenger vehicle.

In other words, those who are driving smoke belching gas guzzling carbon omitting jalopies are in fact incentivised not to, upgrade to something more efficient.

Secondly, it was recently announced that the levy is to be implemented as a specific tax, not as an ad valorem tax. The revenue gained can now go straight into state coffers without any assurances that it will be ploughed back into the environment, making it just another form of taxation, for us working class schmos to contend with.

Ernest Roper
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