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Treasury tries to calm fears over proposed carbon tax
03 November 2015

Treasury tries to calm fears over proposed carbon tax

SA’s proposed tax on gas emissions will not impact on already high electricity prices, nor will it add pressure to sectors such as the mining industry, the Treasury said yesterday (Monday). A report on the BDlive site notes the carbon tax was postponed two years ago to 2016 after industry expressed fears that it would hurt profits already eroded amid a global commodities slump and higher electricity tariffs. ‘Taking into account the current state of the mining and other distressed sectors, the combined effect of the rates (and) exemptions in the carbon tax and the reduction in electricity levy will be designed to ensure that such sectors are not adversely affected,’ the National Treasury said in a Draft Carbon Tax Bill released for public comment yesterday. ‘The tax-free percentage thresholds will remain fixed during the first phase, until 2020. The percentage tax-free thresholds might be reduced thereafter or may be replaced with absolute emission thresholds.’ A Fin24 report quotes the Treasury as saying: ‘The carbon tax will assist in reducing Greenhouse Gas emissions and ensure that SA is ready ... to deal with future climate risks and challenges, and also be in a position to take advantage of new investment opportunities.’
Full BDlive report
Full Fin24 report
See also a Moneyweb report


Carbon Tax

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