PRETORIA – President Cyril Ramaphosa has signed the Carbon Tax Act into law and it will come into effect on June 1, the National Treasury said on Sunday.
The Act was gazetted on May 23, together with the Customs and Excise Amendment Act, the Treasury said in a statement.
"Climate change represents one of the biggest challenges facing humankind, and the primary objective of the carbon tax is to reduce greenhouse gas (GHG) emissions in a sustainable, cost effective, and affordable manner. Government has outlined its strong commitment to play its part in global efforts to mitigate GHG emissions as outlined in the National Climate Change Response Policy (NCCRP) of 2011 and the National Development Plan (NDP) of 2012," the Treasury said.
The Carbon Tax Act gave effect to the polluter-pays principle for large emitters and helped to ensure that firms and consumers took the negative adverse costs (externalities) into account in their future production, consumption, and investment decisions.
Firms were incentivised to adopt cleaner technologies over the next decade and beyond. The carbon tax would initially only apply to scope one emitters, from June 1 to December 31, 2022, and the second phase from 2023 to 2030.