Hauliers slam carbon tax costs

As South Africa moves
to finalise a carbon
tax scheme, the Road
Freight Association has
hit out at the potential
cost to operators.
“We cannot afford
another tax,” said RFA
chairperson Frank
Wagner.
“The proposed carbon
tax aims to generate an
extra R2 billion for the
government. While the
RFA supports actions
to limit greenhouse
gases and lower carbon
emissions, we as South
Africans cannot afford
yet another tax.”
He argued that other
countries around the
world offset increases
in carbon taxes with
decreases in other taxes.
Wagner calculated
that at R75 per CO2
tonne, carbon tax was
likely to produce in the
region of 1.4% of the
country’s GDP. And
with the rate at say
R250 per tonne it would
comprise approximately
4.6% of the GDP.
“This will result
in one of the biggest
tax increases in South
African history –
approximately 5%,” he
said.
“The only other tax
likely to be bigger is
fuel tax. A carbon tax
based on fuel tax on
average would amount
to 16c per litre at the
carbon tax rate of R72
per CO2 tonne. This will
increase to 52c per litre
if the tax rate for CO2
increases to R250 per
tonne.
“At the higher rate,
it will cost an operator
an additional R330
per 1000km,” warned
Wagner.