According to February budget forecasts put out by South Africa’s Treasury, carbon tax collection for the 2019/20 financial year is estimated to come to R1.8-billion. That is not a lot. The total revenue target this financial year is over R1.4-trillion. So at first glance, the burden on the industry from the new carbon tax seems pretty light.
Industry groups meanwhile have warned of the costs from an additional tax burden that could potentially see jobs shed.We have rising production costs because our ores must be accessed at greater depths and escalating input costs.
There remains a lot of uncertainty about the ultimate impact of a carbon tax – which is why the Treasury is committed to evaluating the costs and benefits before the next phase is rolled out.