Environmental taxes to impact new vehicle prices
The Minister of Finance, Calle Schlettwein in his Budget Speech verified that the implementation of the levy draft legislation is being prepared and taken into account after the Cabinet Committee on Legislation has agreed on the list of all the products and the tariffs for the levies.
The tax levies are an implementation of the Appropriation bill which is a legislative motion (bill) that authorises the government to spend money. It is a bill that sets money aside for specific spending
PwC Senior Manager Dennis Hyman said, “the idea apparently behind environmental taxes worldwide is to discourage people from harming the environment, by taxing the carbon dioxide emitted by vehicles, people are encouraged to acquire vehicles with lower CO2 emissions as the more CO2 a vehicle emits into the atmosphere, the more damage could be done to the earth’s atmosphere.”
Vehicles with higher Carbon dioxide emissions will be required to pay double the levy. The calculated levy is based on vehicle specifications, and the tax will be loaded onto the selling price of new cars. There is some light for consumers as not all vehicles will be required to pay the levy. Large trucks, trains, boats and aeroplanes will be excluded from paying the tax levy as well.
Lobby groups urged assistance from the government in the form of subsidies or funding to dispense of these harmful products such as vehicle tyres and Incandescent light bulbs safely which are harmful to humans and the environment as well.
Hyman further said, “Namibians will have to join the rest of the world in the plea to being sensitive to the environment. Government,has fallen in line with environmental policies being implemented worldwide, to be more responsible towards the environment and the eco-system.”
In terms of collection of the taxes Hyman said, “we do not foresee that the collection of environmental taxes will be outsourced to an agency and the customs system will be adjusted to accommodate the collection of these taxes with an onus on the importer or producer to comply with the legislation once introduced.”