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.