Don’t be lax on carbon tax
Industries will pay high price for energy inefficiency.
BUSINESSES will most likely be slapped with carbon tax by next year.
The Treasury on Tuesday said the 2016 implementation date is still on target, with plans to release the draft bill in the next two months for public comment.
However, heavy industries will bear the brunt of the amendment.
According to analysts, the introduction of carbon tax will have a huge impact on the cost structures of smokestack industries.
At the proposed rate of R120 per ton of carbon emission, Eskom is expected to pay over R10-billion per year.
Khalima Energy Solutions President Vusi Nene recently warned local companies to be well prepared for the costly blow.
‘This tax will continue to grow – it will see a 10% escalation per annum until 2020 of its phase one implementation.’
‘On the bright side, business owners can profit from the Energy Efficiency Tax Incentive.
‘It allows for tax deductions calculated at 45 cents per kilowatt hour or kilowatt hour equivalent of energy efficiency savings.’
The Treasury hopes the tax will add significantly to revenue currently under major fiscal constraint.
It estimates it could generate up to R30-billion a year, given final allowances and exemptions.
While some industry experts fear the tax burden will make SA companies less globally competitive, others are pleased the new law will force carbon intensive corporates to clean up their act.
