Environmental tax to promote domestic value addition
25 Feb 2016 19:40pm
WINDHOEK, 25 FEB (NAMPA) Government will this year proceed to finalise the approval and implementation of environmental taxes to promote domestic value addition.
Finance Minister Calle Schlettwein made the announcement in the National Assembly on Thursday when he tabled the 2016/17 National Budget worth N.dollars 66 billion.
He said this is one of the measures that will be undertaken during the current budget year and over the Medium-Term Expenditure Framework (MTEF) with regard to tax policy proposals.
The initial idea behind environmental taxes worldwide is to discourage people from harming the environment by taxing the carbon dioxide emitted by vehicles; people are encouraged to acquire vehicles with lower carbon dioxide (CO2) emissions because the more CO2 a vehicle emits into the atmosphere, the more damage could be done to the earths atmosphere.
Since 2012, the Environmental Investment Fund (EIF), in partnership with the German Agency for International Cooperation (GIZ) and the Ministry of Finance, has undertaken a study on environmental fiscal reform in Namibia. The taxes would include a once-off carbon emission levy and taxes on beverage cans, non-returnable plastic and glass bottles, new and second-hand cars, car tyres and non-energy-saving light bulbs.
The tax rates on the identified products will be set out in the Government Gazette and will take into consideration the ability to pay to avoid placing undue burden on consumers, as well as to incentivise recycling, utilisation of better alternatives and adoption of better environmental management methods.
The Ministry of Finance, through its Customs and Excise Directorate, will be responsible for the collection of the taxes in line with the centralisation of the revenue approach and duty as source regime. The collection will help strengthen the government's capacity to fund environmental programmes and other national development programmes.