The Zambia Institute of Environmental Management (ZIEM) has welcomed the recently introduced Carbon Emission Tax.
ZIEM Chief Executive Officer (CEO) Morgan Katati says the institute is of the view that the revenue from carbon emission tax should adequately fund the environmental sector.
He told ZANIS in a statement today that Zambia has for a long time now been using the standards setting approach through licensing and emission standards according to statutory instrument No. 141 of 1996 Act No. 12 of EPPCA 1990.
He explained that the taxation approach is another abatement model used to collect money from polluters and information has it that carbon emission tax may be the low cost solution of achieving a given standard of pollution control.
He said ZIEM has, however, raised serious concerns that need to be addressed before the commencement of the tax.
Mr. Katati observed that major stakeholders were not consulted in coming up with the tax approach as a means of anti pollution measure.
He advised government to consider consulting exhaustively on the importance of the tax issue as most people are in the dark regarding the issues pertaining to carbon emission tax.
He further explained that there is also lack of knowledge on the damage function of each pollutant which needs to be addressed as there must be some knowledge on marginal external cost of each form of pollution adding that this alone is difficult to estimate in practice.
‘’Therefore this concern requires that as a country we invest certain level of technology and high levels of expertise to spell out challenges to do with pollution figures if we avoid figures being “massaged” for the purpose of collecting the tax” he said.
Mr. Katati said the tax approach is costly to implement at times and is usually open to legal wrangling if it is based on the measure of economic value of damage which he said is usually disputed by the polluter.
He noted that in order to address the concerns, the standards of emissions should be clarified in order to come up with a perfect threshold which would attract a tax.
He said government should establish the impact of carbon tax on the current revenue structure as this leads to proper selection of tax collection structures.
Mr. Katati added that since government wants tax emission to become law, it is wise to follow the path of ecological development paradigm as many countries that have effected the law do.
ZANIS