Proposed levy on tyres to fund recycling

Submitted by: Amanda Botes, Thursday, April 19, 2012

A waste tyre management fee of R2.30 + VAT per kg of tyre is being proposed by the draft Integrated Industry Waste Tyre Management Plan (IIWTMP) of the Recycling and Economic Development Initiative of South Africa (REDISA). The fee will be used to fund a large scale recycling programme.  The plan was released for comment on the 17 April 2012.

The IIWTMP aims to ensure that the negative environmental impacts of tyres are minimised and that resources are conserved. Every year 11 million tyres are sold in South Africa and the majority become waste tyres.  Waste tyres often illegally end up in stockpiles or on general landfills and contribute to air pollution and are considered a fire hazard. The plan intends that waste tyres are avoided, reused and recycled before disposal.

Waste tyre management fee

The key proposal of IIWTMP is the introduction of a waste tyre management fee of R2.30 + VAT per kilogram of new manufactured and imported tyres and casings.  This fee will be charged to tyre producers and importers.

This management fee will fund the setting up of recycling depots, a computer tracking system, training and support to small businesses as well as an education programme.

At this stage IIWTMP is not proposing that a waste management fee be imposed on legacy tyres (tyres that are already in use on vehicles).

If producers pass the waste tyre management fee onto consumers the price of an average passage car tyre of 8 kg in weight will increase by approximately R18 +VAT per tyre.

Job creation

It is proposed that the management fee would be used to establish a network of 150 recycling depots that will be leased out to broad-based black economic empowerment (BBBEE) entrepreneurs. In addition it is proposed that small businesses will also be used to transport the tyres from collection points to the depots. In total REDISA aims to create 10,000 jobs through the IIWTMP including opportunities for tyre transporters, waste tyre processors and waste storage.

A National Centralised Computer System is also proposed to capture data on tyres from production through to collection and recycling.

It is further proposed that tyre dealers will be required to use an accredited tyre transporter to transport their waste tyres to accredited recycle depots.   Tyre users will be encouraged to return waste tyres to a tyre dealer who will then send them for recycling.  Informal collectors will also be able to collect tyres and hand them in at recycling depots for a small payment.

An education programme is also proposed that would help users prolong tyre life by explaining the importance of regular wheel balancing, wheel alignment and tyre pressure checks.

Comments on the draft IIWTMP can be made to Ms Nolwazi Cobbinah at ncobbinah@environment.gov.za.  The closing date for comments is the 17th May 2012.

 

Amanda Botes