Reminder: Carbon Tax Policy Paper open for comment

Following a 2010 discussion paper, National Treasury has released a policy paper on a carbon tax. Finance Minister Pravin Gordhan had said in his 2013 budget speech that the tax will come into effect on 1 January 2015. The tax rate remains at R120 / t CO2-eq, though with exemptions to many sectors, the effective rates are R12 to R48. Of key importance is the design details, including the rate, threshold, treatment of energy-intensive industries and use of revenue to shield poor communities from any economic burden.

The full document is available at http://www.treasury.gov.za/public%20comments/Carbon%20Tax%20Policy%20Paper%202013.pdf

A press release outlines the highlights: http://www.treasury.gov.za/public%20comments/Press%20Rwilelease%20-%20Carbon%20Tax%20Policy%20Paper%202013.pdf

The document is open for comment until August, see www.treasury.gov.za

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