Costs for state-owned utilities Eskom and Sasol are set to increase as the SA government forges ahead with plans to impose a carbon tax to help reduce emissions.
In addition, companies including steelmaker ArcelorMittal South Africa and gold producer AngloGold Ashanti have said the additional charges are unaffordable and will deter investment.
The carbon tax has been repeatedly delayed since it was first proposed in 2010, reports Bloomberg.
Government’s initial plans were based on a charge of R120 rand on every ton of carbon emitted above a 60% threshold. Based on estimates last year, National Treasury officials claim that the proposed tax may raise R8 billion to R30 billion in revenue a year, says Bloomberg.
