THE effective rate for the carbon tax to be introduced by January 2015 is too low and the proposed design is complex and not easy to understand, says the Energy Research Centre of the University of Cape Town.
In comments on the Treasury’s policy paper issued earlier this year, the centre calls for a simpler tax, but applied at the absolute level of R120 per metric tonne on 40% of carbon tax emissions, rather than the proposed minimum of R48 on 100% of the emissions after exemptions.
The centre said the effective tax rate, given the “complex set of exemptions” of between R12 and R48 per metric tonne of carbon dioxide, is too little to transform South Africa’s energy economy. The tax would not make a sufficient contribution to bending the curve of national greenhouse gas emissions, it said. Read on BDLive >