Carbon tax not popularly received by Parliament

Public comment still open…

emissionsgraphicNational Treasury has released more on carbon tax with the publication of a policy paper making at the same time a final call for public comment on the whole issue of carbon tax before the expected draft bill becomes reality.

Furthermore, the policy paper has again been re-presented to the standing committee on finance in its updated form. It was not popularly received by opposition members and some ANC Alliance critics. Details on these meetings will follow on this website after client reports have been digested.

Not necessarily a done deal

The updated carbon tax policy paper, “Reducing greenhouse gas emissions and facilitating the transition to a green economy” is now in circulation and includes input from the previous round of public comment.

Still calling for an initial tax rate of R120 per ton of CO2 emissions in the first phase of five years starting 1 January 2015 and staying until 31 December 2019, this will be followed with yet another phase but 60% of actual emissions will not be taxed initially.

According to departmental calculations, this will mean the effective tax rate will range between R12 and R48 per ton of CO2e during the initial phase, it was said.

Treasury insists tax is to change behaviour

During the first phase the agricultural and waste sectors will be exempt and a tax free threshold of up to 70% will also apply in the electricity sector. Treasury stated in their recent presentation to Parliament that the intention behind the tax is to change behaviour, meet international obligations and not so much to raise additional revenue.

Opposition members said that industry would not agree with this potential investors.

Written comment is invited until 2 August 2013.

The following articles are archived on this subject:
http://parlyreportsa.co.za//energy/parliament-briefed-on-new-climate-response-policy/
http://parlyreportsa.co.za//uncategorized/integrated-energy-plan-iep-is-not-crystal-ball-gazing-says-doe/
http://parlyreportsa.co.za//energy/manufacturing-fighting-to-survive-in-sa-mps-told/

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