First phase of environmental taxes ready: Saara
19 Feb 2014 19:40pm
WINDHOEK, 19 FEB (NAMPA) The first phase of the environmental taxes is ready for implementation, and will encompass the carbon dioxide emission tax on motor vehicles, incandescent light bulbs and motor-vehicle tyres, the finance minister said on Wednesday.
Saara Kuugongelwa-Amadhila made the announcement while tabling the 2014/15 National Budget in Parliament.
In order to meet the increasing resources of the State, we continue with efforts to identify new sources of revenue, she said.
A carbon dioxide tax was designed to reduce the output of greenhouse gases and carbon dioxide, a colourless and odourless incombustible gas, into the atmosphere. The tax is imposed with the goal of environmental protection.
The finance ministry has since 2011 been pushing ahead with its plans to introduce environmental taxes on specific disposable consumer goods as well as on passenger vehicle carbon-dioxide emissions and tyres.
This levy will be calculated based on vehicle specifications, and the tax will be loaded onto the selling price of new cars.
The minister said Government will continue with tax reforms to enhance efficiency, broaden and deepen the revenue base and increase the competitiveness of the tax regime.
Other tax changes to be introduced are a non-mining corporate income tax rate which will further be reduced by 1 per cent as announced in last years budget; while taxes to promote domestic value-addition in the primary commodity and natural resources sectors have also been finalised and are soon to be introduced.
The VAT threshold will be raised from N.dollars 200 000 to N.dollars 500 000, while excise duty rates (sin taxes) will be reviewed in line with the provisions of the Southern African Customs Union (SACU) Agreement.