South Africa Introduces Waste Tyre Levy

by Lorys Charalambous, Tax-News.com, Cyprus

20 January 2012

Under South Africa’s new Integrated Industry Waste Tyre Management Plan, a recycling levy will be charged on the purchase price of new tyres, with effect from February 1, 2012.

The Minister of Water and Environmental Affairs, Edna Molewa, recently announced the approval of the plan which, it is hoped, will help South Africa meet its climate change goals.

Recycling and Economic Development Initiative SA (REDISA) has been charged with managing the country's waste tyres, estimated at over 200,000 tonnes a year. REDISA will collect the waste tyres from all over the country, including tonnes from stock piles that are unaccounted for, for use in various recycling processes and for fuel and other energy needs.

Currently there is no proper management of waste tyres in South Africa and old tyres are being dumped at landfills, leading to serious environmental and health problems for the country. However, by January 31, 2012, all tyre manufactures and importers will have had to register with REDISA.

From February 1, the production and importation of new tyres in South Africa will be subjected to a levy of ZAR2.30 (USD0.29) a kilogram, to pay for the collection of old tyres, distribution to recyclers, and research and development.

Environmental Affairs Chief Director for Waste Management, Nolwazi Cobbinah, said the levy may drop in the future, depending on the amount of money that initially gets collected and the success of the initiative, but a total ban on tyres being dumped at landfill sites should be expected within the next five years.

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