The tax has been planned for almost a decade. But it was delayed in a country that is struggling to boost economic growth while also being the 14th largest polluter in the world, according to Greenpeace.
In South Africa, environmental groups such as the WWF hailed the new tax as “a significant first step”, but said it was far too weak at its present level. Nevertheless, industry is indignant that the tax has been introduced by a government that says its priority to foster growth and create jobs by promoting investment.
It described the tax as “the wrong method at the wrong time — a time of already deep financial stress”, adding it would “erode profitability through increasing costs resulting in a shrinking sector”.Matthew Parks, of the umbrella union Cosatu, said it was “worried about the impact of pollution and global warming on poor working class communities”.South Africa’s unemployment rate is at near record highs of more than 27 percent, with youth joblessness above 50 percent.
But then Eskom’s carbon tax liability is projected to be in the region of 11.5 billion rand a year, according to Gina Downes, Eskom’s environmental economics advisor.
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