POWER SUPPLY: Time to Scrap 'Green' Tax
Recent Western Cape Business News
THE Cape Town Regional Chamber of Commerce and Industry would like the Minister of Finance, Trevor Manual, to scrap the two-cent-a-unit “green” tax on electricity which he announced in his budget earlier this year.
At the time he said the tax was designed as an incentive to make people use less electricity, but in view of the recent tariff increases, its effect would be marginal at best.
“If the 35 percent tariff increases implemented by the municipalities do not make people rethink the way they use electricity, Mr Manual’s extra two cents a unit will certainly not do so. There is no point in introducing this tax now,” said Gerald Wolman, President of the Chamber.
“I think we are looking at a tax that will serve no useful purpose at all. The extra VAT earnings from the higher electricity prices will replace the revenue from the new tax so the Treasury does not need this money. In the circumstances, all the electricity tax will do is add costs and anger consumers.”
He pointed out that the government had reaped massive profits from Eskom in the good years and said that now was the time to plough some of this money back into the economy, perhaps in the form of alternative energy projects and not take out more through the tax.
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