on 23 February provided more clarity on issues that affect carbon taxpayers. Here are the main points:The finance minister announced an increase to the carbon tax rate to R144 , effective from 1 January 2022. To uphold South Africa’s
As a result of delaying the second phase, some sectors will remain beyond the reach of the carbon tax for now. These includeforestry and other land use and waste sectors, as well as Eskom, the state-owned power utility. Eskom had factored in the projected cost of the carbon tax in its proposedCarbon budgets:
Emitters that have participated in the voluntary carbon budget system are entitled to an additional 5% tax free allowance. Once carbon budgets become mandatory, this allowance will fall away. Those who exceed their mandatory budgets will pay a tax penalty.for energy efficiency will be extended to 31 December 2025. This tax benefit aims to encourage investment into cleaner technologies which improve energy usage.