12-May-2011 2:44 PM

South African Airways opposes EU’s airline carbon tax

South African Airways’ acting head of corporate affairs, Dileseng Koetle, said SAA believed the carbon trading scheme that the EU intends to introduce in early 2012 was unfair because it taxed carriers on the whole journey, when only a small portion was actually taking place within the EU (IOL, 11-May-2011). She said it might also mean that SAA would be “subject to double (and more) taxation when South Africa introduces its own carbon taxes and other African countries which we overfly introduce their own taxes and we are liable for EU taxes for the same journey”.

SAA: “The proceeds from the carbon tax are being collected to be placed in the general fiscus of the EU. The funds are not being earmarked for any environmental programmes. The cost to SAA is complex to quantify as it is dependent on the carbon credit amounts paid by the airline, which we will be forced to purchase on the open carbon markets.” Dileseng Koetle, acting head of corporate affairs. Source: IOL, 11-May-2011.

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