South Africa’s carbon tax Bill, which was tabled by Finance Minister Tito Mboweni in November, will come into effect in June 2019.
The carbon tax Bill was adopted by Cabinet in August 2017 and was published as a draft Bill in December 2017. The National Treasury said the Bill would enable South Africa to meet its targets as agreed in the 2015 Paris Agreement.
Mboweni noted that South Africa would make a serious effort in playing a role in reducing greenhouse gas (GHG) emissions globally.
The Carbon Tax Bill will contribute towards addressing the harm caused by GHG pollution and give effect to the ‘polluter pays’ principle.
“The carbon tax provides tax-free emissions allowances ranging from 60 percent to 95 percent for the first phase, which will provide sectors with sufficient time and flexibility to transition activities through investments in energy efficiency, renewables and other low carbon measures, the statement read,” the National Treasury said.
A review of the impact of the tax will be conducted after at least three years of implementation of the tax and will take into account the progress made to reduce GHG emissions, in line with national determined contributions commitments.