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News & Press: Tax Professional

Budget reaction - CO2 emissions, public benefit organisations and fuel levy

01 March 2013   (0 Comments)
Posted by: Stiaan Klue
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Increase in vehicle CO2 tax emissions, plastic bag and incandescent bulb levies

This tax encourages consumer to buy vehicles with lower carbon emissions and data shows declining average carbon emissions since its inception. An increase from R75 to R90 for every gram of emissions/km above 120g CO2/km is proposed. For double cabs an increase from R100 to R125 for every gram in excess of 175g CO2/km, effective 1 April 2013.

Effective 1 April 2013, it is proposed that plastic bag levies will increase from 4c/bag (since 2009) to 6c/bag; the environmental levy on incandescent light bulbs increasing by R1 per bulb to R4 per bulb.

Public-benefit organisations

Previously, donations up to a maximum of 10% of taxable income, made to PBO’s in areas including environmental, welfare and humanitarian activities, were deductible. In order to encourage larger donations, a roll-over of donations to PBO’s in excess of 10% of taxable income in any given year is proposed and may be deducted in subsequent years.

Rules regarding the funding of PBO’s by other PBO’s are also under consideration.

By Danielle Botha, Associate, Tax, Cliffe Dekker Hofmeyr

Increase in Fuel Levies

With effect from 3 April 2013, government proposes to increase the general fuel levy and the Road Accident Fund Levy by 22.5c/l and 8c/l respectively.

Notwithstanding the proposed increases, it must be noted that since April 2010, the general fuel levy included an additional levy component of 7.5c/l for a new multi-product pipeline. This additional levy was included in the general fuel levy to help fund the construction of additional pipeline capacity and was introduced for a period of 36 months. This additional levy component will end on 2 April 2013. Accordingly, the net increase in the general fuel levy on 3 April 2013 will only be 15c/l and not the full 22.5c/l. Furthermore, the demand-side levy on 95 octane petrol sold inland will be increased on a date to be determined later this year.

By Nicole Paulsen, Associate, Tax, Cliffe Dekker Hofmeyr


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