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Tibor Majlath
Posted on 29 Jun 2015 7:54 am

Which gas are we talking about? Which gases will be attracting $75,000 of tax?

This reference might be to R404A which attracts that tax. It is 3260 times more
potent as a greenhouse gas than CO2. Now a carbon tax of $23/tonne of CO2 means
the carbon levy on R404A is

Carbon levy for R404A = $23/tonne x 3260 = $74,980/tonne or $74.98/kg

The list price went from $92.88/kg before the CT came in on 1 July 2012 to
$167.86/kg = $92.88/kg + $74.98/kg. That is an 81% increase due to the carbon
levy.

No business would pay list price. However, the amount of R404A represented
by $5200 @ $92.88/kg before the carbon tax

kg. of R404A = $5200/($92.88 per kg) = 56 kg

The list price went from $167.86 to $377.71 = $92.88 + $74.98 + $209.85
on 9 July 2012. That is the 'supply charge' increase of $209.85 is
125% of $167.86 cost imposed by the refrigerant industry.

The cost of 56 kg of R404A @ $377.71/kg on 9 July 2012
= $377.71 x 56 kg = $21,152

Truly remarkable agreement if we are both talking about R404A.
But the claim is misleading in that it leaves out more than it says.
The claim is that the CT is entirely responsible for such a massive
rise in costs. Just not true.

AG Coombs warned in 2012 out that the list price of $377.71 is not only due
to the $75 'equivalent carbon levy' but also due to substantial supply
price increase influenced by global refrigerant supply problems.
Who would have believed it?

Now, the percentage component of the $21,152 cost of R404A

Pre tax list price of $92.88 : 56 kg x $92.88/kg = $5201 or 24.6% of $21,152
Carbon levy of $74.98 : 56 kg x $74.94/kg = $4199 or 19.9% of $21,152
Supply charge of $209.85 : 56 kg x $209.85/kg = $11,752 or 55.6% of $21,152

The smallest component of that $20,200 is the carbon levy.
More than half of the cost comes from the supply charge slapped
on by the refrigerant industry.

Why did no one manage to point this out? The nation had a right to know.


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