In his 2014 national budget speech, finance minister Pravin Gordhan delayed carbon tax plans to 2016. He said that although measures to address climate change and reduce emissions are needed, further consultation regarding the tax structure is required.
“To allow for further consultation, implementation of the carbon tax is postponed by a year to 2016,” he said, adding that limiting climate change will also include environmental regulations and renewable energy projects.
Gordhan also revised mining tax, saying that the impact of the tax system on economic growth and job creation, and aspects of VAT, mining taxes and estate duties would be reviewed during 2014.
In response to this, Mike Teke, Chamber of Mines president, said in a statement that the Chamber looks forward to engaging the Davis Tax Committee and sharing its views on the mining taxation system and the overall contribution of mining to the economy.
He adds that, “in terms of the government’s commitment to a consultation process on mining sector contributions to managing the issue of acid mine drainage, the chamber looks forward to engaging in this process,” in response to Gordhan’s statement that an ‘appropriate funding mechanism’ would be established this year to pay for the management of acid mine drainage (AMD).
“Regulatory and other measures have been put in place to address the environmental consequences of acid mine drainage,” said Gordan. “To complement current efforts and ensure that the mining sector makes its fair contribution towards continuing acid mine drainage expenses, consultations will be initiated on an appropriate funding mechanism.”