Share

Carbon tax could hit economy - Sacci

Johannesburg - The proposed introduction of carbon tax could have a severe impact on the economy and job creation in South Africa, the SA Chamber of Commerce and Industry (Sacci) said on Monday.

"[We are] supportive of measures to reduce carbon emissions in principle, so long as those measures remain tax neutral," Sacci CEO Neren Rau said in a statement.

He said Sacci had submitted comments to the Treasury on the carbon tax policy paper, which provides a framework discussion on plans to introduce a carbon tax of R120 per ton of carbon dioxide from 2015.

The submission included comments on the sparse details or commitments on revenue recycling options -- like tax credits for investment in energy efficient machinery, Rau said.

The paper also underestimated the "rigidity" of the labour market and the ability of business to absorb workers dismissed from energy-intensive industries.

"Sacci will continue to engage with the National Treasury in order to find a policy solution to climate change that will not endanger economic growth and job creation," Rau said.

In his budget speech in February, Finance Minister Pravin Gordhan announced the introduction of a carbon tax to mitigate the effects of climate change.

In May Treasury introduced the carbon tax policy paper, titled "Reducing greenhouse gas emissions and facilitating the transition to a green economy", for public comment.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
907.85
+1.2%
Palladium
1,012.25
+1.1%
Gold
2,219.28
+1.1%
Silver
24.85
+0.8%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders