South Africa: Tire Recycling Initiative Threatened by Levy Plan

redisaIf the South African Treasury goes forward with their plan on introducing an environmental levy, the SA’s tire recycling initiative might be in jeopardy. The non-profit organization Redisa receives from tire manufacturers and importers a fee of R2.30/kg of tire for funding its recycling activities. The Treasury is now planning to substitute this fee from 1. October with an environmental levy of the same amount. Annually Redisa collects about R550m in fees.

The draft Rates and Monetary Amounts and Amendments of Revenue Laws Bill, which contains the provision, is still under deliberation by Parliament’s standing committee on finance. Regarding the proposals, the Department of Environmental Affairs needs to make an annual budget allocation for Redisa.

For Redisa, however, this way of funding is uncertain and would require a shift in their planning and contractual arrangements from a five-year time horizon to one year.

“In order for Redisa to achieve its planned objectives it requires predictability in funding over the long term,” the organization said during public hearings on the bill.

Article source:  Business Day Live

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