What is the Environmental Levy and how is it applied?


The environmental levy is paid on all imported goods into the country, as well as on the sale of all locally manufactured goods. The levy charged is 0.5%.  

 

By virtue of the Provisional Collection of Tax (Environmental Protection Levy) Order, 2015, the levy is charged in two (2) instances:

  1. On goods imported. The levy is applied to the costs, insurance and freight (c.i.f.) value of the goods.
  2. On the sale of locally manufactured goods. The levy is only charged on 75% of the selling price (before any GCT or Special Consumption Tax (SCT) is applied.

Manufacturers can claim the levy as a credit, where the goods imported will be used in their production process.  The levy paid on the importation of equipment will not be credited.

 

Greater details on how to apply and make a claim for the levy on locally manufactured goods can be found HERE.