Introduction of carbon tax could result in significant job losses.
Industry analysts warn that the proposed introduction of a carbon tax on emissions in 2015 could result in thousands of job losses. Despite a continuous national focus on job-creation, National Treasury has proposed that a carbon tax be levied at R120 per ton of CO2 emitted and that it should increase by 10% per annum. A general tax-free threshold of 60% will apply.
Speaking at the South African Institute of Tax Practitioners’ (Sait) Indirect Tax Summit, Pietman Roos, policy consultant at the South African Chamber of Commerce and Industry (Sacci), warned that the introduction of the tax would create massive unemployment.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.