The South African Institute of Taxation (SAIT) provided feedback on the “Carbon Tax Discussion Paper: Phase Two” to the National Treasury, expressing support for maintaining revenue neutrality for electricity prices and incentive-based allowances, while raising concerns about the lack of reference to decreasing emissions in the 9th National GHG Inventory Report, the timing and effectiveness of increased carbon offset allowances, and the removal of the trade exposure allowance for fuel combustion emissions. SAIT also highlighted the significant increase in carbon tax rates, which could hinder investment in decarbonisation, and recommended extending existing incentives and introducing a new “Investment Allowance” for decarbonisation projects.
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