Higher duties proposed for vehicles polluting air
The Energy Regulation Commission is considering a system to discourage people from importing vehicles that emit too much carbon dioxide and use fuel inefficiently. FILE PHOTO
What you need to know:
- Known as the Feebate system, it is a combination of fees and rebates whereby a fee is levied on inefficient vehicles while efficient vehicles get a rebate.
Car owners might pay higher duties when they import vehicles that pollute the air if a proposed law to conserve the environment is implemented.
The Energy Regulation Commission is considering a system to discourage people from importing vehicles that emit too much carbon dioxide and use fuel inefficiently.
Known as the Feebate system, it is a combination of fees and rebates whereby a fee is levied on inefficient vehicles while efficient vehicles get a rebate.
Motor vehicle dealers and assemblers could pay emission fees ranging from Sh1,000 to Sh50,000, while the range for rebates would be between Sh10,000 to Sh100,000.
Vehicles will also be required to have a mandatory label on the windscreen that indicates how efficient the engine is and the amount of carbon dioxide they emit.
Speaking at a fuel economy stakeholders workshop on Thursday, deputy director of economic affairs at the Treasury Wanyambura Mwambia said increasing tax brackets on imported vehicles has not encouraged importation of fuel-efficient cars.
Mr Mwambia said the age limit of second hand vehicles imported into the country might have to be further reduced.
