Mboweni Tables Carbon Tax Bill

Finance Minister on Wednesday tabled the Carbon Tax Bill in Parliament, giving effect to the announcements made in the 2017 and 2018 Budget statements.

Tabling the bill, Mboweni stated that “climate change poses the greatest threat facing humankind, and South Africa intends to play its role in the world as part of the global effort to reduce greenhouse gas emissions”.

The Carbon Tax Bill and related measures will enable South Africa to meet its targets as agreed in the Paris Agreement, National Treasury said in a statement.

“The Carbon Tax Bill gives effect to the polluter pays principle and aims to price greenhouse gas emissions by obliging the polluter to internalise the external costs of emitting carbon, and contribute towards addressing the harm caused by such pollution,” National Treasury said.

The carbon tax will become effective from 1 June 2019.

“To cushion the potential adverse impacts on energy intensive sectors such as mining, iron and steel, the introduction of the carbon tax for the first phase will not have an impact on the price of electricity.

“This will be achieved through a tax credit for the renewable energy premium built into the electricity tariffs and a credit for the existing electricity generation levy.”

Source: SAnews.gov.za