23 February 2010
New tax on cars not all that green
Melani Gosling (Cape Times)
THE new "green tax" on vehicle carbon emissions will add about R1.2bn a year to government coffers, but it is unlikely do much to reduce the country's carbon emissions.
The government's purpose in imposing the tax on all new passenger vehicles is to make South Africa's vehicle fleet more energy efficient.
It is assumed that if consumers are to pay more for cars that have higher carbon emissions, they will buy ones that emit less carbon, eventually transforming the country's fleet into one dominated by energy-efficient vehicles.
The tax adds an average of 2 percent to the price tag of all new passenger cars, varying with the model and carbon efficiency of the engine.
Marcel de Klerk, head of vehicle and asset finance at Absa, believes this amount spread out over monthly payments over three years is unlikely to have "an excessive impact" on consumers, so is unlikely to affect their choice of vehicle.
"Someone who can afford an expensive gas-guzzler of R600 000 is unlikely to be influenced by an additional 2 percent. The emissions tax on a R250 000 car would be just over R5 000. This would add only about R120 to the monthly payments of R6 000. In a car-crazy South Africa, consumers will not hesitate to pay that extra amount," he said.
On the average new car price in South Africa of R150 000, the carbon tax would vary from R750 to R2 000, depending on the model and amount of carbon emitted.
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