The Minister of Finance recently announced the implementation of the carbon tax effective from 1 June 2019. The Draft Carbon Tax Bill makes provision for the carbon offset allowance in terms of Section 13.
The National Treasury today publishes the Draft Regulation on the Carbon Offset for a second round of public comment and further consultation. A key design feature of the carbon tax is the carbon offset allowance which provides flexibility to firms to reduce their carbon tax liability by either 5 or 10 percent of their total greenhouse gas (GHG) emissions by investing in projects that reduce their emissions.
The main comments received on the first Draft Regulation on the Carbon Offset focused on:
the design of the carbon offset including the role of the carbon offset in facilitating the transition to a low carbon economy;
scope of the offsets and the suitability of a cap on the allowance; and
the technical, legal and administrative aspects of the regulation.
Due date for comments
The Draft Regulation on the Carbon Offset is available on the National Treasury website:
Written comments should be submitted to revisedoffsetcomments@treasury.gov.za by close of business on 14 December 2018. Members interested in a copy of the Carbon Tax Regulation should contact Mmabatho at secretary@middelburginfo.com for a copy.
MCCI urges the government take note ove the impact the implementation Carbon Tax had on France and the Yellow vest riots.