The National Treasury has issued assurances that the proposed taxes on gas emissions will not impact already high electricity prices, nor will it add pressure to sectors such as the mining industry.
Releasing the Draft Carbon Tax Bill for public comment yesterday (Monday), the treasury department pointed out that the tax had been designed to ensure that its overall impact would, in the initial phase, be “revenue neutral”, and also neutral on the price of electricity.
"Taking into account the current state of the mining and other distressed sectors, the combined effect of the rates/exemptions in the carbon tax and the reduction in electricity levy will be designed to ensure that such sectors are not adversely affected when the tax is implemented.”
The Bill's tax-free exemptions will range between 60-90% of total emissions. "This implies that the carbon tax will be imposed on only 5-40% of actual emissions during this period," Treasury said.
"The carbon tax will assist in reducing Greenhouse Gas emissions and ensure that SA is ready ... to deal with future climate risks and challenges, and also be in a position to take advantage of new investment opportunities,” the Treasury statement reads.
The carbon tax will be administered by the South African Revenue Service (Sars) and the deadline for submission of comments is December 15.
