New carbon tax legislation to kick in on June 1
Energy-intensive companies worry about its effect on business
President Cyril Ramaphosa has signed the Carbon Tax Act into law and it will come into effect on June 1. A carbon tax has been in the works for almost 10 years and its implementation date was announced in the 2019 budget speech in February. The act was gazetted on Thursday, the Treasury said on Sunday. The act, which provides for exemptions and rebates for large emitters, has been criticised by the environmental lobby as being too weak to change behaviour. But energy-intensive companies, such as those in the mining industry, are concerned about the potential negative impact of the tax in its current form. The carbon tax will initially only apply to “scope 1” emitters in the first phase, which will span from June 1 2019 to December 31 2022. A review of the impact of the tax will be conducted before the second phase, and will take into account the progress made to reduce greenhouse gas emissions. Embattled power utility Eskom is not exempt from the carbon tax, but an allowable tax...
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