“Plug tax” planned for South Africa

The Department of Environmental Affairs has proposed an environmental levy or tax in South Africa on all goods which have an electrical plug. This is according to a report in Business Day.

This levy, said Department of Environmental Affairs spokesman Albi Modise, is aimed at managing the disposal of electrical products after they are no longer used.

The new levy or tax is therefore a way to get funds to limit harm to the environment by electrical equipment.

Business Day quoted Modise as saying that the department is planning to improve the “management of various waste streams”, which includes electrical equipment.

Modise would not confirm or deny that the planned environmental levy would be 10% – the number which Business Day said was claimed by an industry group.

This additional tax on electrical goods will be passed on to consumers, which will result in an increase in the price of electrical products,

This was seen earlier this year when government introduced VAT on digital goods sold in South Africa.

Many digital goods suppliers, including Apple, informed consumers that there was an upward adjustment of prices to account for the 14% value added tax being charged on digital goods.

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“Plug tax” planned for South Africa