NATIONAL NEWS - President Cyril Ramaphosa has signed into law the Carbon Tax Act No 15 of 2019, which comes into effect from 1 June, as announced by the Minister of Finance in the 2019 Budget.
The Act was gazetted on 23 May 2019 (Gazette No. 42483), together with the Customs and Excise Amendment Act No. 13 of 2019 (Gazette No. 42480).
According to a statement by National Treasury, the primary objective of the carbon tax is to reduce greenhouse gas (GHG) emissions in a sustainable, cost effective and affordable manner.
Just how cost effective it will be to the average South African, remains to be seen, as the tax will increase the price of petrol with 9c/l and diesel will go up by 10c/l on Wednesday 5 June.
"Government has outlined its strong commitment to play its part in global efforts to mitigate GHG emissions as outlined in the National Climate Change Response Policy (NCCRP) of 2011 and the National Development Plan (NDP) of 2012.
"South Africa subsequently set its own domestic targets as outlined in the Nationally Determined Contribution (NDC), which was incorporated as the South African commitment in the Paris Agreement (convened by the United Nations Framework Convention on Climate Change (UNFCCC).
"South Africa ratified the Paris Agreement in November 2016. The carbon tax forms an integral part of ensuring that South Africa meets these targets.
"The Carbon Tax Act gives effect to the polluter-pays-principle for large emitters and helps to ensure that firms and consumers take the negative adverse costs into account in their future production, consumption and investment decisions.
"Firms are incentivised towards adopting cleaner technologies over the next decade and beyond."
The tax will have a severe impact on the struggling mining sector.
Read the full statement here.
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