1 Namibia Tax Bulletin 6/ 2016 . Environmental taxes effective 11 July 2016 . The Minister of Finance announced on 4 July 2016 that the recently introduced environmental taxes on the import of electric filament lamps, new and used (re-treaded) pneumatic tyres and new and used motor vehicles (the so called carbon emissions tax) will be imposed from 11 July 2016 . The environmental tax will be levied when such goods are imported into Namibia . Notice was given in the National Assembly on 26 April 2016 by the Minister of Finance that the environmental taxes will be payable on the importation of goods referred to in the previous paragraph. In terms of section 65(1). of the Customs and Excise Act amendments to duty rates become effective and therefore payable once notice thereof is given in the National Assembly.
2 The environmental tax has however not been levied by the Directorate of Customs and Excise to date as a result of system specification challenges. The Minister of Finance accordingly made a transitional ruling regarding the imposition of the environmental tax to cover the period 26. April 2016 to 10 July 2016 for the collection of the environmental tax due on the import of the excisable goods. The Minister of Finance has indicated that all goods subject to the environmental tax imported on or after 26 April 2016 which have not been sold by 10 July 2016 will be subject to the environmental tax. In terms of section 65(4). of the Customs and Excise Act an importer of goods subject to the environmental tax is required to conduct a stock take on 11 July 2016 to determine which goods are on hand that were imported on or after 26 April 2016 .
3 The importer is required to submit a sworn statement to Customs and Excise by 18 July 2016 of such goods showing the description and quantity of the excisable goods. The environmental tax on these goods will be payable by 31 August 2016 to the Directorate of Customs and Excise. This arrangement applies to any person who has imported any of the goods referred to above. Importers of motor vehicles must by in possession of an offer to purchase (referred to as OTP) from a customer by 10 July 2016 to avoid the imposition of the environmental tax on the sale of vehicles on or after 11 July 2016 . The SAD500 import document will reflect environmental tax levied as from 11 July 2016 . In the case of motor vehicles, the carbon emissions tax will be based on the carbon emissions of the vehicle imported as certified by the car manufacturer.
4 Importers will be able to obtain a statement from ASYCUDA which will indicate the environmental tax liability payable. If an importer has a credit facility at the Directorate of Customs and Excise, the environmental tax liability must be settled by the end of month following the month of import to avoid the Directorate Customs and Excise suspending imports. It is recommended that vehicles which are imported are accompanied by a manufacturer's certificate confirming the carbon emissions of each vehicle to minimise delays when importing vehicles. As indicated above the environmental tax is payable when the goods are imported into Namibia . Importers who are liable for the environmental tax may make use of a credit facility at the Directorate of Customs and Excise.
5 The Directorate is currently investigating the requirements that importers must comply with to be granted the credit facility. An announcement on the requirements is expected to be made by the Commissioner for Customs and Excise. The environmental tax for motor vehicles is calculated by using the following formula: CO 2 emissions exceeding 120g/km or 140g/km x the levy rate (N$40). A motor car with carbon emissions of 447g/km will therefore have an environmental tax of (447 -120) x 40 = N$13 080. For tyres the tax is N$10 per tyre and electrical filament lamps will be subject to a tax of N$3 per lamp. The environmental tax should form part of the cost of goods and, after applying the importer's mark up, the selling price of goods will be subject to value-added tax at the appropriate VAT rate.
6 The environmental tax rates applicable from 11 July 2016 are as follows: SECTION A - Specific Environmental Duties Customs tariff Description of goods Rate of code environmental duty Electric filament lamps - tungsten halogen lamps - of a power of N$ per lamp 15W or more but not exceeding 1000W and for a voltage exceeding 100V but not exceeding 260V excluding those for use solely or principally with motor vehicles Other electric filament lamps of a power not exceeding 200W N$ per lamp and for a voltage exceeding 100V: Other electric filament lamps, of a power of 15W or more and for a voltage not exceeding 260V. Other electric filament vacuum type lamps of less than 15W N$ per lamp Other electric filament lamps of a power exceeding 200W but not exceeding 1 000W and for a voltage exceeding 100V but not N$ per lamp exceeding 260V.
7 Other electric filament lamps N$ per lamp All new pneumatic tyres N$ per tyre All re-treaded or used pneumatic tyres N$ per tyre SECTION B - Environmental Duty on Carbon Dioxide (CO2) emissions Customs tariff Description of goods Rate of code environmental duty Motor cars and vehicles principally designed for the transfer of N$40 per g/km persons excluding vehicles for the transport of 10 or more persons CO2 emissions including the driver, hearses, emergency vehicles and diplomatic exceeding vehicles 120g/km Motor vehicles for the transport of goods with a gross vehicle N$40 per g/km mass not exceeding 3 400kg per chassis fitted with a cab and /CO2 emissions double cabs excluding emergency vehicles and diplomatic exceeding vehicles 140g/km Government Gazette 6019 dated 30 May 2016 contains the full details of the Environmental Duties that have been imposed.
8 Windhoek office +264 61 289 1100. Key Tax Contacts Cameron Kotz Friedel Janse van Rensburg Yolande B ttger Clarissa //Garo s Walvis Bay office +264 64 205847. Julia Engels Etienne Louw EY | Assurance | Tax | Transactions | Advisory @EY_Africa 2016 EYGM Limited. All Rights Reserved Disclaimer This Tax Bulletin is based on the Amendments to the Customs and Excise Act 20 of 1998. The Tax Bulletin is for general guidance only. Specific tax advice must be obtained when considering the tax effects of particular transactions. No liability is accepted for the consequence of any inaccuracies contained in this tax Bulletin .