The income generated from the carbon dioxide (CO2) emissions tax levied on the sale of new passenger cars from September 1 must be channelled to green projects, says Imperial CEO Hubert Brody.
He notes that the income stream from this tax regime should be used for research and development (R&D) into producing vehicles that are more fuel frugal, or into R&D for electric vehicles, for example.
Brody says the funds collected in this way have “to be channelled to be a stimulus” for low-carbon projects.
The new CO2 tax is expected to earn the national fiscus an estimated R450-million in the 2010/11 financial year. Cars will be taxed, based on their certified CO2 emissions, at R75/g/km (R85 when Vat is included) for each gram per kilometer above 120 g/km, adding 2% to 3% to the price tag of a car.
Treasury officials told Engineering News last month that the main aim of the tax is to influence the composition of South Africa’s vehicle fleet, so that it becomes more energy efficient and environment friendly.
Officials say that the revenues collected will be used to fund general govern- ment priorities, including various envi- ronmental aims.
Imperial owns AMH, which imports the Kia, Hyundai, Bentley, Chery, Zotye, Foton and Daihatsu brands into South Africa.