Budget 2017
ENERGY: Power to the people
Carbon tax legislation will be refined this year for readiness by next year’s budget, despite industry protests about an additional tax burden and that SA’s reliance on coal for energy makes carbon taxes impractical
Government expects to be able to provide clarity on the alignment of the carbon tax and carbon budget by the end of this year, according to national treasury. A carbon tax has been under discussion for several years to help SA to meet its commitments to combat climate change, but it is deeply unpopular with the business sector. Energy-intensive businesses say it will increase their costs at a time when the economy is under pressure. Hogan Lovells SA head of mining Warren Beech says the carbon tax is inevitable because it is one of SA’s international commitments. It is likely to be ready for the 2017/2018 budget. But SA Institute of Race Relations chief economist Ian Cruickshanks is sceptical. He says that as a developing country dependent on its cheap and abundant sources of coal, SA cannot afford to tax a key source of its energy mix. Treasury says a revised Carbon Tax Bill will be published for public consultation and tabled in parliament by the middle of this year. It will not ha...
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