The Road Freight Association (RFA) has raised questions about the need for the introduction of a carbon tax in South Africa. This follows a call from National Treasury for input from stakeholders across the country into the second and final round of the updated carbon tax policy after which draft legislation will be published to ultimately give effect to the tax. The government has set a deadline of January 1 2015 for the implementation of the carbon tax. While the organisation is in full support of the reduction of greenhouse gases (GHG), in its submission currently being circulated amongst its members it points out that South Africa contributes less than 2% of the total global emissions. In addition it is the first developing country to introduce a nationwide carbon tax – something that could render the country less competitive internationally and make the cost of business all the more expensive. “Even first-world countries like the United States of America do not have a nationwide carbon tax,” reads the document. The RFA appointed a carbon committee earlier this year to draft its submission to Treasury and also to gain some understanding and clarity around the pending carbon tax. The organisation is also taking the opportunity to ask for clarity around certain aspects in the White Paper such as the calculation of emissions and the proposed emission thresholds. The RFA maintains that the introduction of yet another tax is going to impact negatively on the already overburdened road freight sector, which according to a recent survey by Statistics South Africa already had a net profit of below 4%. The organisation has repeatedly said that a carbon tax will only see the trucking industry at the mercy of yet more costs over which there is little or no control. There are currently no viable options for alternative fuels (available supply of bio diesel, LPG and carbon-free alternatives) in the road freight industry. In its submission the RFA is proposing that instead of a tax the government looks at other options such as reducing congestion on the roads through fewer stops and starts, reducing border and port inefficiencies, the use of more green wave technology and of acetone-free additives and catalysts. INSERT 1 2% South Africa’s total contribution to global emissions INSERT 2 4% Roadfreight's net profit
