SA carbon tax delayed

Implementation of a carbon tax in South Africa has been delayed to June 2019 said Finance Minister Tito Mboweni in his medium-term budget statement in Parliament on Wednesday.

A delay of six months later than the original implementation date of 1 January 2019, Mboweni said that National Treasury had “heard the concerns of business and labour during the parliamentary hearings.”

“The carbon budgeting system and the carbon tax will be aligned. This is done by imposing a higher tax rate as a penalty for emissions exceeding the carbon budget,” he added.

And that was the extent of comment on the matter.

The long road to carbon tax in South Africa began in 2010 with the release of a discussion paper, a policy paper in 2013, the Carbon Offsets Paper in 2014, and the first Draft Carbon Tax Bill in 2015. In the February 2018 Budget speech, then Finance Minister Malusi Gigaba said government proposed to implement the tax from January 2019 to meet its nationally determined contributions under the 2015 Paris Agreement of the United Nations Framework Convention on Climate Change.

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