Fin24

Govt mulls green tax on all cars

2010-08-24 20:08

Johannesburg - Though it will not be implemented this year, the government is considering slapping a carbon dioxide (CO2) vehicle emissions tax on all cars - new and old, Finance Minister Pravin Gordhan said on Tuesday.

This will be implemented by reviewing the approach to vehicle licence fees, which are implemented by provinces, he told parliament.

"As we improve our public transport, we could also impose higher fuel levies and demand better quality fuel. All in all, there is a place for all these mechanisms if we want to reduce the emission of greenhouse gases and ensure that we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change," Gordhan said.

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 said.

"I should add that we do have a comprehensive approach to the environmental taxes. Work in this area began in 2003, including a paper on environmental fiscal reform published in 2006 and the discussion paper on carbon taxes that will be published shortly," he added.

   

Comments
  • Mark - 2010-08-24 18:52

    It would be nice to know what these taxes are going to be used for. Are they going to be used to improve public transport and decrease the reliance on cars, or perhaps on creating green energy in the form of wind farms. Or, is it going into someone's back pocket?

  • Investor - 2010-08-24 18:53

    This extra tax will be a drain on growth. Now is not the time, let the economy recover first. Pravin and Jacob, what are you smoking?

  • WTF - 2010-08-24 20:42

    Only the South African government would announce a Carbon Tax before it has published the discussion paper on Carbon Taxes. What is WRONG with these people...?

  • hapy kola - 2010-08-24 20:49

    while you make pretty speeches, were being cut to shreds. any excuse to suppress the middle class

  • 10111 - 2010-08-24 20:51

    And what are they going to do with the tax? Like the environmental tax on our plastic bags, I guess absolutely bloody nothing!!!

  • 10111 - 2010-08-24 20:54

    And why don't they just add a levy on the fuel for this, this way EVERYONE pay extra for the 'green' tax? If I buy a V8 and leave it in the garage for 5 years and a sales rep that drives around with a small BMW will polute more than me, but I have to pay R25K for 'green' tax and he much less.

  • Johan - 2010-08-24 20:55

    Thanks Mr Gordhan, BUT 1. Green (carbon) tax are supposed to change people's behaviour, in this case to use alternative transport. What alternative Mr Gordhan? 2. You've been talking about better fuels for ages now, are you going to penalise yourself for failing us for so long by keeping energy effecient vehicles of our markets because you fail to supply quality fuels? 3. And don't give me this human induced global warming evil carbon pseudo science nonsense that is no more scientific than tarot cards! Can you not think for yourself? Read the "science" reports (I did) and then you'll realise how insane their claims are. Utter nonsense! But let's leave it at that, a topic for another day.

  • 10111 - 2010-08-24 20:56

    And the biggest tax evaders in the country (Taxis) will probably not pay one cent for the 'green' tax.

  • lol@lol.co.za - 2010-08-24 20:57

    I wanna see these money thugs grabbing at our hard earned money, go into townships and collect money from blacks? Not gonna happen!

  • Joe - 2010-08-24 20:57

    This is absurd. The easiest is to put the tax on fuel directly then the high volume CO2 contributors are taxed directly on their fuel consumption. The tax should also be dedicted to environmental and carbon reducing projects. That way, even if I choose to buy a heavy on fuel vehicle, if I don't use it often I'm not disproportionately penalised. But I guess the fact that this option was not taken indicates the intent to only tax certain citizens. But what else is new?

  • francoise - 2010-08-24 20:57

    WHy are we trying to impose 1st world legeslation in a 3rd world country? My question Mr. Gordhan, What future for our children? I will believe the statement " if we want to reduce the emission of greenhouse gases and ensure that we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change," Gordhan " the day you disclose where you used the 1.5 Billion rand taxed funds???? Are these funds to be used for environmental causes or to line the pockets of bull shit. Stop F ing arround and egt in better quality fuels for one and once you have that impose the taxation on fuel so that those individuals who drive gas guzzlers think about it and those people who dont well ???

  • Josh - 2010-08-24 21:04

    Why don't the government just take my whole salary and just give me a bread and some water every day. Maybe then they'll be happy. Someone started this high CO2 crap and governments world wide just saw dollar signs.

  • Realist - 2010-08-24 21:05

    If the goivernment was serious about carbon emissions they would eliminate the coal power stations. This tax is a band wagon tax that yet again targets the man in the street. What government does not seem to understand is that not all cars ar owned by companies. Whom at the end of the tax year get that expenditure back.

  • Grant - 2010-08-24 21:09

    this cant include the Zols Bud's? if this is true we can expect at least a 75% drop in the TAXI industry.

  • Karl - 2010-08-24 21:09

    He can take his tax and stick it up his exhaust pipe. Until such time as public transport takes me 38 km in 30 min he can take this idea and smoke it

  • James - 2010-08-24 21:13

    Ridiculous. I drive less than 10 000 km per year and others do 2 or 3 times that so my "carbon footprint" is somewhat minute yet I have a feeling that I will be taxed along with the heavy carbon crowd regardless. Get real government, this is simply another way of relieving us of our shrinking rands

  • Nico Booyse - 2010-08-24 21:14

    Yeah that's it, it's easy to say "Let’s be Green" but I wonder what the greenies will they say when it hurts their pockets. Especially because there is so many different opinions to what really causes climate change.

  • John Citizen - 2010-08-24 21:19

    read my lips, man's role in Global warming is insignificant compared to the effect of the sun, eart quakes & volcanos. Channel 4's 1hour long documentary cleary proves that the scientists that is advocating this, is getting funding from governments to the tune of 2 billion dollars. This Global Warming boogey man & the so-called life threating conscequences, allows governments & corporates to tax & make more margin on me John Citizen. I strongley take exception to this legalised stealing & suggest that you find other ways to fund your hobbies.

  • Dave Viney - 2010-08-24 21:21

    Yet another government tax to supplement their corruption and free gravy train expenses at the cost of "Joe public" If they were serious about pollution and conservation why are the sewerage treatment plants not functioning effectivly and in a delapidated condition, thank your ANC politicians for lineing their pockets and ignoring the facts. Is the gravy train getting low on funds so lets find another tax to add to the burdens of tax payers? because pollution is not on the ANC's list of interests

  • Hielke - 2010-08-24 21:21

    Hmmmmmmm nice way to fill up goverment "pockets" bet not a cent of this so called taxes will be used for what it is supposed to be used. Another typical example of well thought out thievery.

  • Rina - 2010-08-24 21:22

    Why does this goverment not just say, pay your entire salary to the state, and the state shall be paying all your bills and keep you. There is no way we can survive the way they're carrying on. They try and soft soap, and take HUGE chunks within the hour, we cannot go on like this any longer! Curb the people of the goverment, take salary cuts, curb the maladministration, curb the chommy chommy and do something worthy for the people of south africa. rather stay in your country and do some spring cleaning before you jump in your jetsettings to other countries. blind man's bluff, who are you trying to kidd?? You're not kidding me any longer you keep on taking the constitution and messing it up because this was decided at some bush camp now eat this i'm tired!!!!!

  • Olavin - 2010-08-24 21:40

    I would want to be dutiful and pay the carbon tax so that our children can have a cleaner, climate-change free world, but, that would be a fairy tale. Our children will be paying this too for generations to come and will likely have more taxes imposed on them in the name of giving their children a better life. Tax is purely for greed purposes. Not to better the lives of our children.

  • anon - 2010-08-24 21:43

    And the govenment provides what in return for this new tax?????????

  • Rob Smith - 2010-08-24 21:49

    Good God, Whatever next... Hope the minister is considering taxing Eskom and Sasol for their CO2 emmisions as well - afterall they are what make SA the largest per capita CO2 producer in Africa, and the 13th largest per capita producer in the world (2007 figures), with 80-90% of the CO2 emissions coming for solid fuel combustion. After all Eskom has the largest coal fierd power station in the world (Kendal - the 10th biggest CO2 producing point source in the world - 26.8 million tonnes of CO2 per annum). In addition the Sasol plant in Secunda is the largest single point source of CO2 emissions in the world!

  • Allan - 2010-08-24 22:00

    Yet another knee-jerk TAX. What is going to be done with the money? We paid taxes on fuel which was intended for road maintenance but look just look at the roads. Then the government introduces toll roads and not like in Canada where a toll road once it has recoupe the money spent on building it then has the toll road declassified and it is free to travel and the Government maintains it. What about the already high taxes on cars at point of manufacture followed by vat. This is now tax on tax. Why must we pay a green tax when the government has not forced the fuel companies to go greener fuel like in Europe. Then we could get greener vehicle engines which can't currently operate with this poor quality fuel in SA. So why must we pay green tax when our government might be guilty of dragging its feet in forcing fuel companies the refine a greener product? Lets wake up and smell the roses for a change and then get our ducks in a row with a clear stategy and not a knee jerk. Then place a tax for emissions which must be measured and certificate issued annualy so that the green tax can to paid accordingly when get a new license. Higher polution the higher the tax. The way the government is going I wonder if they intend introducing a green tax for over weight people who exceed the BMI as they are not green friendly? with the more over weight the higher the green tax. Just a thought!

  • Cire - 2010-08-24 22:06

    Ridiculous - another bare faced robbery of the helpless citizen. Refuse to pay this b......t tax! What a load of crap!

  • gcr - 2010-08-24 22:19

    The government think that they can just introduce all sorts of manner of additional taxes and costs without any due consideration for the paying tax payer. Its now time to revolt against government through the vehicle of civil disobedience

  • awol - 2010-08-24 22:51

    So do I now pay tax for my car while it is parked in the garage as I take the bus to work????? Oh wait - I cant take the bus as the govt has spent billions on a bus lane that isnt finished and I sit alongside the nonexistent bus watching them plant daisies next to the bus lane and a lone bicycle travels along it. Here's a thought: how about a perosnal tax on our guvament MPs burning up fuel in their private jets and luxury sedans - ag there's no point I'll be paying for that too. So petrol, cars, and airports are now being loaded for a bogus tax that will not benefit me in any way. loop naai....

  • SKR - 2010-08-24 23:17

    This is such bull$#!) If they were serious about this, the ruling party wouldn't have their greedy paws in coal, but would start a massive campaign to convert people to solar heating - 6 million houses with solar geysers & you don't need another power-station. And who's going to pay the tax on ministers' arrogant, multi-vehicle cavalcades? Oh, right, that's taxpayers again...

  • Napo - 2010-08-25 00:24

    When will all this money grabbing end. I'm a pensioner and cannot afford to give more money away on grap.

  • THE PUNISHER - 2010-08-25 01:07

    Thanks, you fat stupid minister of theft, you just made my mind up for me: NO MORE RENEWAL OF ANY LICENCES,FALSE NUMBER PLATES, NO TAGS OR NEW NUMBER PLATES ON MY CAR (I KNOW HOW TO BYPASS YOUR "50c PER KILOMETRE ON THE HIGHWAY"), NO MORE TAXES, NO MORE SPEEDING FINES,ETC,ETC. You want to steal for the ANC, you din't steal from me. Rather stop sending our riches to India and China.

  • Sparky - 2010-08-25 02:02

    Expect a "solids" flowmeter on your sewerage line, they will soon tax you for eating too well. Tomorrow morning expect a toll gate & booth in your driveway. If you dare laugh when you read this posting, you will be charged a "fun tax", since the when you contracted your stomach muscles you emitted a miniscule amount of methane, which will exceed the 2014 carbon footprint roadmap of these morons.

  • 911 - 2010-08-25 06:06

    Well my 9 kid needs to make it through school alive today before we start worrying about this cr4p.

  • AES - 2010-08-25 06:17

    Tolls on joburg highways, Carbon tax......WTF how are we suppose to get through month to month surviving and living? THanx Jacob Zuma wow you really are changing things for us!! ALl south africans ALL south africans pull together and we just dont pay!!!!!!!!!What they gona do arrest ALL of us? damn

  • WTFE! - 2010-08-25 07:11

    Yes please! Tax my bodily functions as well while you're at it, tax my fuel which I use to make a pittance of which you take your slice, the same slice you take from my bread and everything else I own, no sorry you own, I'm just borrowing all you're stuff right?! When this wheel turns, your children will be crushed under your runflats..

  • Jason - 2010-08-25 07:17

    We are living in an age where we work for Governments. If we want really want leave a legacy for out children, its time to break the iron chains imposed by governments all over the world.

  • Old car owner - 2010-08-25 07:34

    I pay licensing, fuel levies, toll and various other taxes. By owning and maintaining my old car I am already contributing to the saving of greenhouse gases. The recycling and production of a new car is extremely 'dirty'. There is no clean fuel in ZA, no fair taxing across the motoring world and no public transport for me - taxis are NOT public transport. So, Mr. Gordhan and the .gov - @#$% OFF!

  • Lepo - 2010-08-25 07:36

    Here they go again these guys suck!!!!LIVING IN GREED!!!!Blowing our tax money again. It is a blerry dam circus in that tax place!!!!!!!

  • ockert - 2010-08-25 07:43

    Party, Party, Party - there's more money on its way - now you can afford French Champange again, support for more first wives, more for Grants to produce more children - Mr. Zuma etc.

  • tough-as-nails - 2010-08-25 07:51

    this is an outrageous attempt of our goverment to help themselves into our own pockets. all of a sudden they are concerned about the enviroment. i suppose they all drive electric cars, no wait it's multi million rand extensions of their already over inflated ego's ala tricked out luxury sedans and 4x4's.whats next? an oxygen tax! we already spent our hard earned money on cars we worked for and by that i mean 'worked for', now we have to pay even more to drive it. HAVE THESE GENIUSES EVER TAKEN A TAXI?!!!!

  • VIC - 2010-08-25 07:59

    I can not find (anywhere) how much this tax will be? All you see is that the tax will be implimented in September but now where do they say the amount it would be? What about the old Cars? You want to tax new cars that has much better CO2 "capturing" than the old models - How are you going to account for this - What about if you buy a second hand car? How are you going to tax the 2nd and 3rd owner for buying the exact same car but not new? All you are going to do is hike the price of the second hand car industry which ultimatly will slow the sales and growth of the new car sales - They I want to see how the government cries for the tax they lost on new car sales????

  • Ewert - 2010-08-25 08:00

    People, please, Government have to find a way to fund their 1,3m employees after they settle the current strike. Where else do you think their salaries will come from ?

  • hmm - 2010-08-25 08:07

    I don't want to have kids, so my carbon footprint ends with me. Zuma has 21 kids, he should pay the tax 21 times. Taxes have reached a point where every taxpayer works for the state and has enough money to rent a room, buy food and to get to work every month. Screw them - this money will only be stolen.

  • btk - 2010-08-25 08:07

    If there was public transport in the small town where I live I would be happy to pay the tax as I would then have an alternative to using my car. The safe public transport needs to come first.

  • Ronelle Miller - 2010-08-25 08:09

    Green tax, sounds great, the only problem is 1) will taxi's pay the same tax?; 2) what will the money be used for?; 3) I don't trust the gov officials.

  • Junior Mokoena - 2010-08-25 08:15

    They will tax their own babies at the end of the day.Why can't they tax their many wives and their business and tenders.I will use public transport. Stick your proposed tax in your own cars(ministers) jr

  • Pro Green Peace - 2010-08-25 08:23

    @ John Citizen. As one of those so called "funded" scientists that is advocating global warming, although I am yet to see a cent of the "2 billion" I believe your statement to be pathetic, blind, ignorant and shameful. I did not know people still believed in the boogeyman of global warming. When climate change due to industrial action causes environmental disasters that affect your life. . . .Kodak moment right there.

  • Concerned - 2010-08-25 08:27

    Taken from NAAMSA : 3.By virtue of the fact that mini buses are used predominantly in South Africa for public transport purposes, these vehicles will be excluded from CO2 emissions taxes. Why am I not surprised!

  • Greg - 2010-08-25 08:37

    What are they going to spend this tax money on? We are so far behind other countries with regards to recycling and proper disposal, it is the government not us that is crippling the environment. This is simply just another way to get money out of the working class citizen, which will only benefit a few govt officials pockets, not the environment. This government is making me and our lovely country sick.

  • charmed1 - 2010-08-25 08:41

    Taxi's will not be paying the green tax. There was an article about this a couple of weeks ago. If I recall it correctly the scape goat was that taxis are regarded as public transport and therefore are exempted from this tax.

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