Tax vehicles for carbon emissions, firm urges

A local company in the transport sector has called on the Government to legislate a law that will compel motor vehicle owners to pay tax comparable to the amount of carbon a vehicle emits.

Vehicle and Equipment Leasing Limited, says this will check the amount of carbon released to the environment, as effects of global warming become real.

The proportion of carbon emission from the transport sector has been identified as a major contributor to global warming, and cars account for about 20 per cent of total carbon emissions.

A report by the International Energy Agency, placed Kenya’s annual carbon dioxide emission in 2008 at 8.6 million tonnes.

“Energy and carbon taxes have been implemented in a number of countries in response to commitments under the United Nations Framework Convention on Climate Change. In South Africa, tax has been implemented on new motor vehicles and will apply at the time of sale, related to the amount of CO2 emitted by the vehicle,” says the VAELL MD, Mr Paul Njeru.

According to him, this taxation has been successful in a number of European countries, which has enabled them to set funds to combat climate change.

The company has started a project aimed at reducing carbon emissions and growing forest cover.

It has contracted Tree Capital, a forestry management firm, to plant 3000 trees next year.