Upcoming Carbon Tax in South Africa
By Evelyn Neumayr-Oracle on May 27, 2014
By Elena Avesani, Principal Product Strategy Manager, Oracle
In 2012, the South Africa National Treasury announced the plan to impose a carbon tax to cut carbon emissions that are blamed for climate change. South Africa is ranked among the top 20 countries measured by absolute carbon dioxide emissions, with emissions per capita in the region of 10 metric tons per annum and over 90% of South Africa's energy produced by burning fossil fuels. The top 40 largest companies in the country are responsible for 207 million tons of carbon dioxide, directly emitting 20 percent of South Africa’s carbon output.
The legislation, originally scheduled to be implemented from January 2015 to 31 December 2019, is now delayed to January 2016. It will levy a carbon tax of R120 (US$11) per ton of CO2, rising then by 10 percent a year until 2020, while all sectors bar electricity will be able to claim additional relief of at least 10 percent. The South African treasury proposed a 60 percent tax-free threshold on emissions for all sectors, including electricity, petroleum, iron, steel and aluminum.
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