As global warming is increasing rapidly, the world has turned to renewable energy to try and decrease our carbon use and harmful gasses. Global warming might not have been the only reason for South Africa to consider renewable energy- as this topic comes to light with the current Eskom crisis.

The Minister of Finance, has revealed a draft tax bill for South Africa; effective 1 June 2019; that goes hand-in-hand with carbon tax levies and allowances. Though posing another burden on South Africa’s already strained tax base, the new tax bill could promote positive change on the South African economy, and help reduce harmful gasses.

The carbon tax will be levied at R 120 per tonne of carbon dioxide – which might increase annually – this will surely encourage South Africans to consider renewable energy or face an increase in small business expenses.

Though the news of an extra tax levy being implemented sounds grim, this levy will not only help fund the restructuring and restabilising of Eskom as well as promote renewable power, but also help South Africa to decrease greenhouse gasses in a whole.

Author:

Taritha Oosthuizen
Senior Tax Consultant