Planet Gore

South Africa Delays Carbon Tax and Embraces Fracking

Good for them. Bloomberg:

South Africa’s government delayed the implementation of a planned carbon tax to 2016, while saying it may impose new levies on mining companies to help fund the treatment of acid water seeping from disused gold mines.

The National Treasury two years ago said it planned to charge 120 rand ($11) on every metric ton of carbon emitted above a 60 percent threshold from 2014 and raise the rate by 10 percent a year for the following six years. Finance Minister Pravin Gordhan last year announced a delay in the tax, first proposed in December 2010, until 2015.

“The National Treasury and the Department of Environmental Affairs have agreed that a package of measures is needed to address climate change and to reduce omissions,” Gordhan said in his budget speech in Cape Town today. “To allow for further consultation, the implementation of the carbon tax is postponed by a year to 2016.”

The government will probably raise 8 billion rand to 30 billion rand a year from the proposed tax, according to Cecil Morden, the Treasury’s chief director of tax policy. Companies including steelmaker ArcelorMittal South Africa Ltd. (ACL) and gold producer AngloGold Ashanti Ltd. (ANG) said the additional charges are not affordable and will deter investment

The rest here.

NR Staff comprises members of the National Review editorial and operational teams.
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