SUV’s to be hit by green tax?
The Department of Minerals and Energy is proposing a “green tax” that may see the price of petrol guzzling vehicles such as SUV’s increasing by as much as 33%, as well as greatly increasing the licensing fees of such vehicles.
This forms part of the Government’s efficiency strategy aimed at cutting down consumption patterns by 12% by 2015 by changing behaviour in the private and public sectors. The targets aim to reduce energy consumption in the industrial, mining and power generation sectors by 15%, transport sector consumption by 9%, residential consumption by 10%, and commercial and public sector buildings by 15%.
In additon to increased taxes on inefficient systems, the strategy aims to provide support mechanisms like incentives, rebates and the promotion of renewable energy alternatives. (I’ve recently benefitted from one such incentive system, where I received a R6000.00 rebate from the government on my newly-installed solar water heater).
It seems that the ever-increasing petrol price has had no effect on South African vehicle buyers, and SUV’s remain popular. In fact, the Toyota Fortuner, released last year, is the first SUV to become one of the top 10 selling models in SA. Accordingly, the Government is aiming to provide additional pressure on the public to discourage the buying of gas guzzlers. Director of energy efficiency Elsa du Toit, said that “market forces are not working… experiences worldwide have shown that the only way to enforce changes in behaviour is through punitive measures”.
The department’s model proposes a levy of 2%-33% on the selling prices of vehicles, depending on their size, as well as an additional 20% levy on all SUVs, and a levy of 5%-100% on the annual licensing fee of vehicles, with hatchbacks of 1,6l and smaller exempted.
This could be a very postive step forward for South Africa, provided that the system is implemented effectively, and that the additional revenue generated is used to further environmental causes, especially sustainable energy.
Source: Business Day
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