The intention of environmental levies is to internalise external costs.
In other words these levies are imposed to ensure that the product is offered in the market at its true cost – actual cost. As a consequence the revenue generated from the imposition of levies is ring-fenced and used to address the externality. Unfortunately these levies tend to have a fiscal application, merely serving as a means of generating revenue. From 01 October 2016 a tyre levy of R2.30/kg of tyre will be imposed; on 01 April 2016 the levy on incandescent light bulbs will be increased to R6 per globe, effective 01 April 2016; also on 01 April 2016 the plastic bag levy will be increased from 6 cents to 8 cents; and on 01 April 2016 the motor vehicle emissions levy will increase to R100 for every gram of emissions/km.