The implementation of the environmental tyre levy which was supposed to come into effect on 1 October has been postponed to next year.
The National Treasury announced the implementation of the environmental tyre levy on 1 February. During his budget speech presentation, the Minister of Finance Pravin Gordhan announced that the environmental levy on tyres will become effective on 1 October this year.
However, on 22 September, the National Treasury released a statement explaining that Gordhan decided to postpone the implementation to allow the South African Revenue Service (Sars) time for further consultation with all affected parties on the practical arrangements for the implementation of the levy.
“The objectives of this initiative are to encourage waste reduction, reuse, treatment and recycling and reduce disposal into landfills. It will also help in government’s broader efforts to promote greater levels of transparency and accountability,” read the statement.
According to the draft legislation, the tyre levy will be applied at a rate of R2.30 per kilogram of tyre and implemented through the Customs and Excise Act.
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Sars will be responsible for the collection of revenue, as with all other environmentally-related taxes.
Revenue from the levy will be deposited into the National Revenue Fund. An on budget allocation will be 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.
The Recycling and Economic Development Initiative of SA (Redisa) already stated that it objects to the implementation of the levy, as it said it would place its recycling initiative in jeopardy. On 30 August, Redisa made its objections known when it made submissions to Parliament’s standing committee on finance.
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