The Finance Minister announced that SA is committed to achieving its Nationally Determined Contribution to reduce greenhouse gas emissions. The Carbon Tax plays an important role in mitigation.
Effective 01 January 2023, the carbon tax rate increased from R144 to R159 per tonne of carbon dioxide equivalent. To ensure transparency and provide certainty, future adjustments to the tax rate are provided in the Carbon Tax Act, 2019, as outlined in the Taxation Laws Amendments Act, 2022. In line with the carbon tax rate increase, the Carbon Fuel Levy for 2023/24 will increase by 1c to 10c/l for petrol and 11c/l for diesel from 05 April 2023. The Carbon Tax cost recovery quantum for the liquid fuels refinery sector increased from 0.63c/l to 0.66c/l, effective from 01 January 2023.