RFA committee mulls implications of pending carbon tax

The Road Freight Association (RFA) has established a carbon committee in order to gain some understanding and clarity around the pending Carbon Tax. According to RFA spokesman Gavin Kelly, much confusion exists around the Carbon Tax that government wants to see implemented by no later than January 2015. He said in May the National Treasury had released its updated Carbon Tax Policy Paper requesting input from stakeholders. This is the second and final round of comments on carbon tax policy before government proceeds with the publication of the draft legislation that will give effect to the tax. “The document has clarified some issues such as that the tax would be levied on Scope 1 emissions, namely emission from fuel combustion, gasification and non-energy industrial process, and that Scope 2 emissions, which result from the generation of electricity, heating, cooling and steam, would be taxed in the hands of Eskom. But there is still confusion,” said Kelly. “The carbon committee will take an in-depth look at the document to gain some clarity for the industry while also commenting on it.” Comments are expected to be in no later than August this year. Government is proposing a carbon tax rate of R120 per ton of carbon dioxide, increasing at 10% per annum during the first phase of the policy implementation which runs from 2015 to 2019. The aim of the carbon tax is to change behaviour and motivate citizens across South Africa to curb emissions. Concern has been raised by various organisations, including the RFA, around the spending of the tax money, as it will be poured into the national fiscus rather than addressing environmental issues directly. “There are still a number of unanswered questions as to how the carbon tax is really going to change behaviour,” said Kelly. INSERT & CAPTION The carbon committee will take an in-depth look at the document to gain some clarity for the industry while also commenting on it. – Gavin Kelly INSERT R120 The proposed carbon tax rate per ton of CO2