09 Dec Carbon Tax Update

Posted at 09:11h in Environmental Matters by Adv. Samantha Jane Martin

0 Likes

“The Carbon Tax Discussion Paper, published today, proposes key changes for phase two of the Carbon Tax (2026-2035), aligned with South Africa’s NDC commitments. Key updates include:

1. A gradual reduction in the basic tax-free allowance starting in 2026.
2. Increased performance allowances for firms meeting benchmarks.
3. Expansion of carbon offsets to stimulate the domestic carbon market.
4. Removal of the tax-free allowance with mandatory carbon budgets from 2026.
5. Higher tax rates for emissions exceeding carbon budgets.
6. Adjustments to trade exposure thresholds for qualifying allowances.
7. Replacement of the electricity generation levy with carbon tax, with potential renewable energy deductions.

Public comments are open until 13th December 2024. The proposals will be revised based on feedback and announced in the 2025 Budget.”