National Assembly passes Carbon Tax Bill
Based on the polluter pays principle, companies which exceed the threshold of carbon emissions, will be charged R120 per ton of carbon dioxide emissions.
CAPE TOWN - The National Assembly has passed the long-awaited Carbon Tax Bill.
Based on the polluter pays principle, companies which exceed the threshold of carbon emissions for a particular activity, will be charged R120 per ton of carbon dioxide emissions.
The new tax is expected to come into effect in June and tax incentives will be offered to minimise the impact.
South Africa became party to the Paris Agreement on climate change, committing to reduce greenhouse gases by 42% by 2025.
Deputy Finance Minister Mondli Gungubele says substantial technical changes were made to the policy to take into account stakeholder comments.
“I would like to emphasise that climate change is a reality and we will have to prepare to operate in a carbon-constrained economy over medium to long-term. Operating on business as usual basis is no longer an option.”
While the EFF, IFP and Cope have supported the bill, the DA's Alf Lees says the country can ill-afford to introduce another tax.
“What South Africa needs is not extra taxes, instead we need a decrease in taxes in order to stimulate the economy and create jobs.”