South African Parliament Passes Carbon Tax
South Africa’s Parliament approved a carbon tax proposal on Tuesday, February 19th. To be signed into law, the legislation will now move to the Council of Provinces and then to President Cyril Ramaphosa. The tax is intended to become operational by June 1, 2019. According to reporting by Carbon Pulse, here are the additional details:
The current legislation:
-Tax rate: 120 rand ($8.49) per tonne with close-to economy-wide coverage.
-It will rise by 2% plus inflation until 2022 and then increase solely with inflation.
-There are several exemptions and offset provisions that will reduce the tax burden on companies.
-After three years of implementation, the South African Treasury will hold a review.