Parliament Seeks Comment on Draft Carbon Tax Bill

Standing Committee on Finance

Parliament has called for comment on the Draft Carbon Tax Bill.

The draft bill was published for comment in December 2017.

It was approved by cabinet in August 2017.

The draft bill 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.

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.

National treasury briefed the standing committee on finance on the draft bill in February 2018.

According to the committee’s invitation, public hearings on the proposed legislation will be held in parliament on 14 March 2018.

Written comment is invited until 9 March 2018.

Meanwhile, treasury recently provided responses to the committee on stakeholder input on Budget 2018.

Treasury emphasized that Budget 2018 “accelerates government’s efforts to narrow the budget deficit and stabilise debt, laying the foundation for faster growth in the years ahead.”

Treasury warned, though, that despite positive signs, significant risks remain to fiscal and economic projections.

“Government is working to boost economic growth, promote more rapid investment to create employment, and stabilise the precarious finances of state-owned companies.”

Sabinet Cape Town Office

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