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Upcoming Carbon Tax Bill (Environmental Law)

- Featured article by LAWYERS-ONLINE.CO.ZA - February 2018

There has been a lot of talk and speculation with regards to the upcoming Carbon Tax Bill to reduce greenhouse gas emissions. With that said, it is important to get a clear understanding of the upcoming implementation of the tax so as to ensure compliance in terms of the Act.

On 14 December 2017 the South African National Treasury published the Second Draft Carbon Tax Bill for public comment. The 2015 Paris Agreement sets out to reduce greenhouse gas emissions and estimates that the carbon tax would lead to an estimated decrease in greenhouse gas emissions of 13% to 14.5% by 2025 and 26% to 33% by 2035.

The National Treasury statement on 14 December 2017 designated that the actual date of implementation of carbon tax will be disclosed during 2018 or in Budget 2019.

The Draft Carbon Tax Bill sets out the base and rate of the tax, entities liable for the tax and the calculation of the tax payable.

It should be noted that the calculation of the carbon tax base is inked to the Department of Environmental Affairs, and mandatory reporting requirements of emissions for all economic sectors of South Africa must be adhered to. With that said, it must be understood that businesses must report their greenhouse gas emissions in compliance with the reporting requirements as projected by the DEA.

The upcoming carbon tax bill will follow intricate procedure. For any questions regarding the carbon tax or environmental law, please consult one of our lawyers-online attorneys.


Upcoming Carbon Tax Bill - Legal Information South Africa