South Africa to Get Carbon Tax in 2013

On February 22, South Africa Ministry of Finance declared that South Africa will impose the "carbon tax" on pollution discharging enterprises from 2013 in order to control the discharge of carbon dioxide.

The Ministry set a threshold for all enterprises that 60% discharge of carbon dioxide are exempt from tax in 2012-2013 budget, the enterprises including electric power, petroleum, steel, aluminum and so on.

Except electric enterprises, all the other enterprises can further apply for tax exemption for extra 10% discharge of carbon dioxide.

According to the requirements, if carbon discharge exceeds the threshold, the enterprises should pay taxes at the rate of ZAR 120 per ton of carbon equivalent (1 dollar is about 7.7 rand).

The policy will take effect from 2013 to 2014, after that the carbon tax will increase by 10% per year till 2020.