NA Passes Carbon Tax Bill


The Carbon Tax Bill has been passed by the national assembly and sent to the national council of provinces for concurrence.

The bill was tabled in parliament in November 2018.

The second Draft Carbon Tax Bill was published for comment in December 2017.

Public hearings on the bill were held on 13 March 2018.

The bill aims 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 bill calls for a R120 per ton carbon tax.

The tax is scheduled to come into effect on 1 June 2019.

The select committee on finance will process the bill.

Meanwhile, the Division of Revenue Bill, Appropriation Bill and Public Audit Excess Fee Bill have been tabled in parliament on Budget day.

The Division of Revenue Bill seeks to:

• provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2019/20 financial year, the determination of each province’s equitable share and allocations to provinces, local government and municipalities from national government’s equitable share and the responsibilities of all three spheres pursuant to such division and allocations; and
• provide for matters connected therewith.

The Appropriation Bill aims to:

• appropriate money from the National Revenue Fund for the requirements of the State for the 2019/20 financial year;
• prescribe conditions for the spending of funds withdrawn for the 2020/21 financial year before the commencement of the Appropriation Act for the 2020/21 financial year; and
• provide for matters incidental thereto.

The Public Audit Excess Fee Bill seeks to:

• provide that the specified excess of the audit fee of certain categories of organs of state, payable to the Auditor-General, as envisaged in the Public Audit Act, 2004, is, if the stated conditions are complied with, a direct charge against the National Revenue Fund; and
• provide for matters connected therewith.

According to a cabinet statement in November 2018, the Public Audit Excess Fee Bill proposes that audit fees in excess of 1% of expenditure of municipalities and certain other public institutions payable to the Auditor-General, be treated as a direct charge against the National Revenue Fund.

The standing committee on appropriations will process the bill.

Sabinet Cape Town Office

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