THE Treasury will forge ahead with plans to convert the tyre levy into a tax despite objections by the Recycling and Economic Development Initiative of SA (Redisa). To do this, it will seek legal advice on the constitutionality of the plan.Redisa is opposed to the Treasury’s proposal to implement a tyre levy at R2.30/kg of tyre and says this would place its recycling initiative in jeopardy. It made its objections known when it made submissions to Parliament’s standing committee on finance.Redisa collects about R550m annually in fees from tyre manufacturers and importers. It has argued that if it was to get its funding through a budgetary allocation from the Department of Environmental Affairs, it would not be able to make long-term budget plans. Also, there would be a hiatus between the proposed implementation date of the levy on October 1 and the next budgetary allocation in March, it said.However, Sharlin Hemraj, the Treasury’s specialist on environmental and carbon taxes, noted i...
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