Budget reaction - CO2 emissions, public benefit organisations and fuel levy
01 March 2013
Posted by: Stiaan Klue
in vehicle CO2 tax emissions, plastic bag and incandescent bulb levies
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.
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.
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.
regarding the funding of PBO’s by other PBO’s are also under consideration.
Botha, Associate, Tax, Cliffe Dekker Hofmeyr
in Fuel Levies
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.
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
Paulsen, Associate, Tax, Cliffe Dekker Hofmeyr