CARBON TAX BILL OPEN TO PUBLIC COMMENT

The Second Draft Carbon Tax Bill is open for public comment until Friday 9 March 2018.

The carbon tax is aimed at companies and businesses that have high carbon emissions, such as industries that rely on fossil fuel consumption.  This will give effect to the ‘polluter pays’ principle, and will assist South Africa in reducing greenhouse gas emissions and in reaching its nationally-determined contribution commitments in terms of the 2015 Paris agreement on climate change.  The tax aims to persuade companies to take steps now to prepare for the future, by gradually changing their fuel inputs, production techniques and processes by encouraging investments in energy efficient, low carbon technologies to lower their carbon emissions.  It will also ensure that while it has a significant impact in reducing the greenhouse gas emissions of South Africa, it will also realise sustained economic growth.

The carbon tax is one of the tools we can employ to reduce our greenhouse gas emissions and prevent further global warming.  It would lead to an estimated decrease in carbon emissions of 13% to 14.5% by 2025 and 26% to 33% by 2035.  Because of this, it’s essential that the tax is designed effectively, and imperative that South Africans contribute their comments on the draft Bill to ensure that it’s undertaken successfully.

In a media statement from 14/12/2017, the National Treasury explains the process for the adoption of the Carbon Tax Bill:

“The Carbon Tax Bill is a Money Bill in terms of section 77 of the Constitution. The process and practice for money bills is governed by the Money Bills Amendment Procedure and Related Matters Act read together with the rules of Parliament. This allows for the current process (as applies to the annual tax bills such as the Rates and Monetary Amounts and Amendment of Revenue Laws Bill and Taxation Laws Amendment Bill), whereby:

  • Tax bills are first published as draft bills, following announcements in the Budget by the Minister of Finance;
  • National Treasury calls for public comments, and comments are submitted to National Treasury;
  • Submission of the draft bill to the Standing Committee on Finance (SCoF) for consideration;
  • SCoF calls for public comments;
  • Public hearings are held by the SCoF;
  • NT submits a Response Document to formally respond to all comments received;
  • SCoF completes its process with recommendations for changes to the bill where necessary; and
  • The Minister of Finance tables the bill to the National Assembly”
Don’t miss the opportunity to take part in shaping decisions that will affect the future of South Africa! Submit your comments on the draft Carbon Tax Bill by close of business on Friday 9 March 2018.

For more information on the Carbon Tax Bill go to https://goo.gl/SdbiLD