Industry sources believe carbon targets are less important than keeping the lights on. The industry is being hit for an input that can’t be substituted at the present time – fuel. And possibly, FTW was told, fuel should be classified as a “process emission”, and the industry be entitled to an additional 10% tax relief on its emissions. An example of this is in the cement industry where there is no alternative to burning limestone to produce cement. This falls under the category of process emissions. It was suggested that the industry should seek relief, based on the fact that fuel, the industry’s main carbon emission contributing factor, cannot be substituted or replaced, and should therefore be treated in the same way as process emissions. Truckers have also complaines that the tax would push up the cost of logistics – already at a level which is severely reducing SA’s trade competitiveness. They, and others in the freight sector, have also suggested that the tax be deferred until economic recovery is more robust. And this tax remains one of the most significant ever imposed, according to a study commissioned by the Road Freight Association (RFA). At a carbon tax rate of R120 the carbon tax is likely to be in the region of 2.2% of gross domestic product (GDP).
