Carbon tax proposal edges closer to reality
15 Dec 2017 - by Adele Mackenzie
National Treasury has published the second draft of the Carbon Tax Bill and parliament is set to host public hearings on the bill in early 2018.
“Following that process, a revised bill will be formally tabled in Parliament, which is expected to be by mid-2018,” said Treasury said in a statement.
Treasury has not provided an implementation date for the carbon tax but analysts expect the Minister of Finance, Malusi Gigaba, to make an announcement during his national budget speech in February next year.
“The announcement on the implementation date of the carbon tax will be complemented by a package of tax incentives and revenue recycling measures to minimise the impact in the first phase of the policy (up to 2022) on the price of electricity and energy intensive sectors such as mining, iron and steel,” said Treasury.
Transport economist, Mike Schüssler, told FTW Online that he expected that implementation would be announced during the half-year budget in October next year. He estimates that the carbon tax applied to fuel would be around 13c per litre.