Phase 2 Carbon Tax Stakeholder Consultation Workshop – Summary of Stakeholder Comments
Following up from the November 2024 discussion paper, South Africa’s Phase 2 Carbon Tax, set to run from 2026 to 2030 and beyond, is progressing through key discussions as part of the ongoing consultation process. The National Treasury outlined plans to gradually reduce tax-free allowances, increase carbon offset allowances by 15%, align carbon budgets with tax obligations, and strengthen revenue recycling for green technologies.
A consultation workshop on the 16th of January 2025 clarified proposals and gathered feedback from stakeholders. Topics included changes to tax-free allowances, carbon pricing, and incentives for green technology, as well as concerns about economic impacts and electricity sector reforms. Feedback highlighted support for increased carbon offset allowances, a phased reduction in tax-free allowances, the development of local carbon markets, and the extension of energy efficiency tax incentives.
Here you find the presentation by National Treasury regarding a Summary of Stakeholder Comments.
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