The proposed carbon tax to be levied by Government could become as great a debacle as e-tolling, Associate Director at Deloitte, Izak Swart has told an Energy Seminar hosted by the Automotive Industry Development Centre (AIDC).
He warned the automotive sector to monitor the policy – a policy paper is scheduled to be released next month – which could have “a profound impact on business”.
In terms of the proposed policy, companies will pay an additional tax based on carbon emissions produced.
In this year’s budget it was proposed that R120 per tonne of CO2e (carbon dioxide equivalent) for emissions above the thresholds.
The levy would come into effect in 2013/14 and increase by 10% a year until 2020.
National Treasury said that nearly two-thirds of emissions would be exempt from tax until 2020 to lessen the impact on industry.
Speaking at the same seminar, Eskom Engineering Consultant Gary Deysel urged the automotive sector to make use of incentives offered by the state-owned enterprise to reduce the demand and cost of power.
He said R200 million had been set aside for energy saving projects at Eastern Cape companies alone to target a reduction in power of 40MW.
METRO MINUTES is an electronic up-to-date daily newsletter (Monday to Friday) covering decisions taken by the Nelson Mandela Bay Council and its committees, in addition to business developments within the Metro and occasionally in other parts of the Eastern Cape. The newsletter is free from October to the end of January. To receive this newsletter, send an e-mail to metminutes@iafrica.com
