http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.06
R/$ = 11.56Change: 0.01
Au 1262.45 $/ozChange: 3.15
Pt 1228.50 $/ozChange: 11.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 02, 2011

No ‘green’ earmarking plan for carbon tax revenue

Back
National Treasury environmental and fuel taxes director Sharlin Hemraj discusses South Africa's proposed carbon tax policy. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
DURBAN|Johannesburg|Africa|Design|Education|Projects|Resources|Should South Africa|Africa|South Africa|Green House Gas Emissions|Transport|Environmental|Sharlin Hemraj
|Africa|Design|Education|Projects|Resources||Africa||Transport|Environmental|
durban|johannesburg|africa-company|design|education-company|projects|resources|should-south-africa|africa|south-africa|green-house-gas-emissions|transport-industry-term|environmental|sharlin-hemraj
© Reuse this



Should South Africa, which produced about 500-million tons of carbon dioxide equivalents (CO2e) yearly, move ahead with the implementation of a carbon tax, the revenue generated would not necessarily be set aside specifically for environmental projects, National Treasury environmental and fuel taxes director Sharlin Hemraj stressed on Thursday.

The National Treasury, which aims to conclude its carbon tax policy ahead of the 2012 Budget, currently favoured a tax on carbon emissions, and its discussion document proposed R75/t CO2e, increasing to around R200/t CO2e over time.

“The imposition of a tax is that money should be spent in a certain way and one of the common misconceptions is that revenue will be used to finance specific environmental activities with the implementation of a tax,” she explained at the Transport Forum, held in Johannesburg.

National Treasury generally sought to eschew such earmarking to enable it to direct resources to a range of priorities, from boosting education to reducing the level of poverty in the country - money that would be spent accordingly to close the gap on challenges that strained economic growth.

However, Hemraj explained that revenue from the tax could also fund environmental projects that focused on mitigating greenhouse-gas emissions, provided there were solid business proposals.

“In the discussion paper, it is indicated that National Treasury does not support strict earmarking. But, we are looking into directing funds through different line departments and then considering those projects on merit. Full earmarking of revenues is not in line with Treasury policy, but it is recognised that funding can be channelled for specific on budget programmes that contribute to reducing emissions,” she explained.

Hemraj also pointed out that South Africa would not necessarily present a complete low-carbon strategy at the 17th Conference of the Parties of the United Nations Framework Convention on Climate Change, or COP17, to be held in Durban, in November. But the country would flag the efforts it was making in this area.

For South Africa to shift to a pure emission tax, a long-term intervention would require emission levels from different processes to be verified. Legislation making reporting mandatory would be required and would need to be developed by the Department of Environmental Affairs. Enforcement capacity would also have to be created.

National Treasury was behind with its schedule for finalising the design and modelling of the carbon tax options, which should be completed by July.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Environment News
Petrochemicals giant Sasol, which typically incinerates its waste sludge streams or sends them to hazardous waste sites, is increasing its use of composting to treat these streams at its Secunda plant, in Mpumalanga, reducing transportation and disposal costs, as...
TESTING WATERS Farmers situated next to officially identified hydraulic fracturing, or fracking, operations need to conduct baseline analysis of their drinking water before fracking starts
Nonprofit organisation for cancer prevention the Cancer Association of South Africa (CANSA) has advised farmers situated next to officially identified hydraulic fracturing, or fracking, operations in the Karoo, in the Eastern Cape, to finance professional baseline...
Petrochemicals giant Sasol, which typically incinerates its waste sludge streams or sends them to hazardous waste sites, is increasing its use of composting to treat these streams at its Secunda plant, in Mpumalanga, reducing transportation and disposal costs, as...
Article contains comments
Article contains comments
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks