South Africa Tosses around Emissions Tax

The South African government is debating a carbon dioxide vehicle emissions tax on all cars, old and new, according to Finance Minister Pravin Gordhan. He said it would not be added before year end, but the government is reviewing the approach to vehicle license fees which are implemented by individual provinces.

"As we improve our public transport, we could also impose higher fuel levies and demand better quality fuel," Gordhan said. Passenger cars will have a carbon dioxide vehicle emissions tax effective on Sept. 1.

This tax will be imposed in terms of amended schedules and rules to the Customs and Excise Act.  

"As with other tax proposals, we have consulted with relevant stakeholders, including the motor car industry. After some initial misunderstanding, I met with the largest motor car industry CEOs last week, and confirmed that the CO2 vehicle emissions tax on passenger cars will proceed as scheduled on September 1 2010.

"However, I have also taken into account some concerns of the industry, and agreed that the tax on double cabs will be delayed slightly, and come into effect on another date in the next few months. This tax will be extended to all other light commercial vehicles at a later date," Gordhan added.

Similarly in North Africa, Egypt implemented a national vehicle scrapping program in 2008 in order to help reduce carbon emissions beginning with taxis (the average age of a taxi was 32 years old). Since April 2009, more than half of the taxi fleet in Cairo was transformed to newer, lower carbon emitting vehicles.

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