Carbon Tax
Carbon Tax: The Next Steps – Practical Implementation and Mitigating Actions
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Carbon tax came into effect on 1 June 2019 in South Africa as part of the desire of government to reduce carbon emissions and live up to its promises and commitments on climate change. Phase 1 of the tax sees carbon emissions taxed at a rate of R120/tonne of CO2e (carbon dioxide equivalent), and with the various allowances considered, the effective tax rate is between R6 – R48/tonne of CO2e. The initial rate will increase annually by CPI +2% until 31 December 2022 and by the CPI from 1 January 2023 onwards.