Treasury Provides Responses to Carbon Tax Bill Submissions

National Treasury

A review of the impact of the proposed carbon tax will be conducted after at least three years of implementation.

National treasury confirmed this during a briefing in parliament on draft responses to submissions on the Draft Carbon Tax Bill.

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

Public hearings were held on 13 March 2018.

The tax is scheduled to kick in as from 1 January 2019.

Treasury added that any “adjustments to the carbon tax instrument beyond the first phase will depend on the economic circumstances and emissions mitigation efficiency achieved.”

The review will also take into account progress made to reduce GHG emissions.

Treasury also confirmed that the mandatory carbon budgets regime to be imposed by the environmental affairs department will be aligned with the carbon tax to ensure no double penalty.

The overall tax free-threshold for domestic aviation will be increased from 90 per cent to 95 per cent by adjusting the carbon offset and performance allowances for the sector.

Treasury also announced that further consideration will be given to the proposal for one annual carbon tax payment.

Meanwhile, Nedlac recently briefed parliament on preparations for the second national financial sector summit.

Some of the proposals to be considered in the second summit include the implementation of financial education at schools, strengthening the role of the financial sector council and reprioritizing the role of development finance institutions and SOEs to focus on the role of the financial sector.

At this stage, the summit is scheduled to take place on 6 July 2018.

Sabinet Cape Town Office

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