Comment Sought on Draft Carbon Tax Bill

National Treasury

The Draft Carbon Tax Bill has been released for comment.

According to a national treasury statement, the proposed legislation is likely to be tabled in parliament in mid-2018.

The draft bill was approved by cabinet in August 2017.

It seeks to:

•    provide for the imposition of a tax on the carbon dioxide (CO2) equivalent of greenhouse gas emissions; and
•    provide for matters connected therewith.

The draft bill flows from the Carbon Tax Discussion Paper in 2010, the 2013 Carbon Tax Policy Paper, and the 2014 Carbon Offsets Paper.

Parliament plans to hold public hearings on the draft bill in early 2018.

The bill will enable South Africa to meet its nationally-determined contribution commitments in terms of the 2015 Paris Agreement on Climate Change.

It will also facilitate reduction of the country’s greenhouse gas emissions in line with the National Climate Change Response Policy and National Development Plan.

The draft bill proposes a rate of carbon tax of R120 per ton carbon dioxide emissions.

Comment on the draft bill is invited until 9 March 2018.

Sabinet Cape Town Office

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