Car importers to pay environmental tax from Monday

08 Jul 2016 17:10pm
WINDHOEK, 08 JUL (NAMPA) - All importers of motor vehicles will as from Monday be required to submit to Customs a certificate indicating the carbon dioxide (CO2) emission of each type of vehicle to be cleared.
The environmental tax will come into effect Monday, according to a public notice issued by the Ministry of Finance on Thursday on the imposition of duties on certain disposable good and vehicle emissions under the Customs and Excise Act, 1998.
“It is anticipated that importers of second-hand vehicles may experience challenges in obtaining the certificate. In such instances, the CO2 to be declared will be equal to, or the same as, the CO2 of the new model of the same kind of motor vehicle,” it said.
Global professional services corporation Ernst & Young (EY) Namibia in its tax bulletin issued in April 2016 said amendments to the Customs and Excise Act 20 of 1998 were gazetted on 30 May 2016 to introduce the long-awaited environmental taxes from this date.
The environmental taxes introduced include the imposition of an environmental duty on certain disposable goods and carbon dioxide emissions of specified vehicles.
It said the object of the environmental duties are to contribute to a green economy and sustainable development objectives; serve as an incentive for behavioural change towards the use of environmental friendly alternatives to some extent; and contribute to the Ministry of Finance’s revenue-raising objectives. The environmental duties will be administered as a domestic excise tax and will be collected when the specified goods are imported or when the goods are manufactured in Namibia.
The company provided a breakdown of how levies will be introduced under specific environmental duties on carbon dioxide emission.
The levies will also be imposed on lamps and tyres.
The rate of environmental duty per lamp, amongst others for electric filament lamps or tungsten halogen lamps of 15 watts (W) or more but not exceeding 1 000W and for a voltage (V) exceeding 100 V, but not exceeding 260V, excluding those for use solely or principally with motor vehicles, will be N.dollars 3 per lamp.
Levies on all new pneumatic tyres will be N.dollars 10 per tyre.
The rate for motor cars and vehicles principally designed for the transfer of persons, excluding vehicles for the transport of 10 or more persons including the driver; hearses; emergency vehicles and diplomatic vehicles is estimated at N.dollars 40 per gram/kilometre for CO2 emissions exceeding 120 grams/kilometre.