Carbon Tax
Carbon Tax
National Treasury published a draft carbon tax bill for comments at the end of 2015. The design of the bill is substantially the same as before, but with some modifications. Companies that operate production processes as listed in the annexure to the regulation declaring greenhouse gasses as priority pollutants will be required to pay carbon tax. The bill requires tax payers to calculate their direct greenhouse gas emissions (deducting liquid fuel related emissions as this will be taxed at the pump) and pay carbon tax on the emissions. The level of tax is set at R120 per ton CO2 with a basic 60% threshold and a number of other relief mechanisms.
Eskom will be required to pay carbon tax on the emissions from their power stations. This will, however, be passed through to energy consumers as a tariff increase.
- Region: Africa
- Country: South Africa
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