South Africa’s Green Tax - how’s it going to be implemented?
At GreenCars, we’ve discussed the SA government’s proposed green tax before, and the biggest question mark hanging over the issue is that of implementation. There have been fears that engine capacity or power output will be used to determine the level of taxation that cars will be subjected to. Clearly, both of these methods would be less than ideal, there are some efficient large capacity and/or powerful engines that actually consume less fuel than other smaller or less powerful engines.
Let’s hope then that the South African government follows the lead of countries like Canada and more recently, France and Finland by implementing policies that subject higher taxes to vehicles with fuel consumption beyond a certain threshold, and give money back to owners of more efficient cars. Government needs to apply the carrot AND the stick when persuading car buyers to purchase cleaner cars.
To illustrate: starting next year in France, any vehicle that emits more than 160 g/km of carbon dioxide will be charged a tax ranging from €200 up to a maximum of €2,600 for vehicles that emit of 250 g/km. Cleaner cars that emit less than 130 g/km will get rebates starting from €200 right up to a maximum of €1,000 for cars like the diesel Smart and VW Polo BlueMotion that produce less than 100 g/km.
Makes a lot of sense to this blogger.
Source: Autoblog Green
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