Mazars Durban - A NEW TAX: WHAT SORT OF FOOTPRINT WILL THE CARBON TAX LEAVE?2016-02-10 II. A NEW TAX:WHAT SORT OF FOOTPRINT WILL THE CARBON TAX LEAVE?
Government is looking to spread its revenue base and from 2017 will almost certainly introduce the much debated Carbon Tax. Punishing the polluterThe proposed tax aims to put the country on a sustainable low carbon emission basis by “punishing the polluterâ€.Initially the proposed tax will have a three year introductory period (2017-2020). In this period the important points are:
Carbon tax will be a complicated affair â€" the calculations as to how it is made up are based on work done by, inter alia, the Ministry of Environmental Affairs. Still, why introduce it?
Over the past several years South Africa has substantially reduced its GHG emissions. Emissions tax on new vehicles, the fossil fuel levy on electricity, the introduction of wind and solar power to the Eskom grid and load shedding have contributed to this. The Chamber of Mines has concluded that we have already met our 2020 GHG emission targets. Finally, government has committed so many resources to quantifying the emissions to be used to calculate the tax, that it is almost as if the Carbon Tax has acquired a life of its own. The tax is complicated and it is worth speaking to your accountant and environmental experts about the impact it will have on your business. |
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