The National Treasury has postponed the implementation of the environmental tyre levy to February 1.
The levy had been due for implementation on October 1.
Finance Minister Pravin Gordhan decided to put the levy, which is aimed at the financing of tyre recycling, on hold to allow the South African Revenue Services (Sars) further time for consultation with all affected parties on the practical arrangements for the implementation thereof.
According to the draft legislation, the Recycling and Economic Development Initiative of South Africa will be applied at a rate of R2.30/kg of tyre and implemented through the Customs and Excise Act.
Sars will be responsible for the collection of revenues, as with all other environment-related taxes. The revenues from the levy will be deposited into the National Revenue Fund, with an on-budget allocation made available through the budget of the Department of Environmental Affairs.
This will ensure a more robust and transparent revenue collection and funding mechanism. The principle of extended producer responsibility will be encouraged and all producers and importers of tyres will be required to fully participate in the implementation process.