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2014/15 Budget could provide clarity on carbon tax – Deloitte

31st January 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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Clarity on the design of South Africa’s carbon tax policy could be a feature of the 2014/15 national Budget to be presented by Finance Minister Pravin Gordhan in February, professional services firm Deloitte said at its pre-Budget event last week.

“If announced, the new-look carbon tax policy will probably present an improved linkage between the proposed carbon tax pricing mechanism and the desired emission reduction outcomes (DEROs) proposed in the National Climate Change Response Policy,” Deloitte director Izak Swart said.

Deloitte manager Barry Drotsche explained that the DEROs, as mentioned in the National Climate Change Response Policy, considered sectors that played a vital role in the country’s emissions space, identifying what could be done to bring about change in those sectors.

Another aspect that was also mentioned in the response policy, that could be taken into account when refining carbon tax pricing measures, was a carbon budget, a tax-free threshold or a cap placed on emissions.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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