South Africa: ‘Govt’s proposed carbon tax rate increase too high business can’t sustain it’

Organised business in South Africa wants government to improve on its carbon tax proposals to “avert unintended consequences”.

The existing proposals are contained in the Taxation Laws Amendment Bill.

A joint statement issued by Business Unity South Africa (Busa) says business commends government’s commitment to decarbonise and sustainably grow low-carbon sectors of the economy.

However, it wants key areas of the Bill addressed, including the rate of the carbon tax rate increase which it says is too steep for business and the economy to accommodate.

“We propose that the annual carbon tax increases continue to be based on the current Consumer Price Index (CPI) +2% structure until at least 2030, to allow for reviewing and aligning different policies.”

Bruce Whitfield talks to Happy Khambule, Busa’s Environment and Energy Manager, about the initiative to incentivise companies to reduce South Africa’s carbon emissions.

Business believes that when the price is increasing this rapidly, it should be counter-measured by some version of allowances and incentives, as is the case in other jurisdictions.

Source: Eyewitness News