South Africa’s plans to levy a carbon tax on airlines from 2012 will “seriously” affect the country’s “competitiveness”. Iata has slammed proposals by the SA government to introduce a carbon tax as part of its 2012 budget, saying industries, including the aviation sector, will be “seriously damaged” as a result. “South Africa is a particularly carbon-intensive destination and relies extensively on long-haul flights from key international tourism markets. Putting a tax on aviation would put in jeopardy the very substantial benefits delivered to SA’s society and economy which far outweigh any additional tax revenues,” says outgoing Iata CEO and DG, Giovanni Bisignani. Airlines Association of Southern Africa CEO, Chris Zweigenthal, says this carbon tax would just be another burden impacting the decision to travel. This, he says, is despite tourism having been earmarked as one of the government’s top six initiatives. “We are faced with the prospect of further additions to the Acsa PSC (Passenger Service Charge) once the final permission is published, the increase in the Air Passenger Tax from R150 to R190 per passenger on international flights, the proposal to increase the Passenger Safety Charge from R12 to R18 (still under consultation with the industry), the impact of rising fuel costs on airfares etc., all raising the cost of travel.” Zweigenthal says the industry has received no assurances that the carbon tax will even be used for environmental purposes. “Treasury has advised that they are not in favour of ring-fencing this revenue and it will be allocated in the normal budget process. It is certainly a concern for all of us.” Iata has called on the SA government to scrap the “unilateral, punitive and ineffective” tax altogether saying that ICAO (International Civil Aviation Organization) of which South Africa is a Contracting State, is developing a global framework for carbon tax. Cathay Pacific Country Manager, David Ryan, says this “hotpotch” of “unilateral regulation” with each country introducing its own conflicting measures is “not ultimately going to help anyone in achieving the environmental goals we are all committed to”. Zweigenthal agrees that a global solution would be better for the industry and the traveller. “Regional or country solutions will just lead to a proliferation of taxes and there is no guarantee that they will be channelled in the direction for which they are intended. A passenger could theoretically get charged twice on one flight by two separate states.” The Treasury has committed to further assess and consult with stakeholders on the impact of the tax. “We will follow an open and transparent consultation process on the final policy,” explains Spokesperson, Jabulani Sikhakhane. Comments from affected industries are currently being processed and by July a tax policy paper will be concluded, which will be published for stakeholder review by November. An announcement will be made in the February 2012 budget speech, explains Sikhakhane.