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South Africa is poised to bolster its carbon tax framework as part of its commitment to combating climate change. The proposed amendments aim to enhance the effectiveness of the carbon tax system, which was initially introduced in 2019. These changes are set to increase the tax rate and extend the tax to more sectors, including waste management and fugitive emissions.
The amendments also propose adjustments to the tax-free allowances and the performance allowance, which could impact businesses’ tax liabilities. Furthermore, the carbon offset allowance will be reviewed, potentially affecting the use of carbon credits to reduce tax obligations.
For an in-depth examination of South Africa’s proposed carbon tax amendments, Mansoor Parker from ENSafrica has provided a thorough analysis available here.
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