Tag: carbon tax

Pressure is mounting for local manufacturers to replace fossil fuels with biomass. They need to reduce their carbon footprints and mitigate carbon taxes. Switching to biomass power is one of the key pathways under discussion. Market requirements and the drive to switch to biomass are growing. In practice, however, adoption is not as prolific as many believe.

South Africa’s revamped carbon tax policy, coming into effect in 2026, signals a decisive shift in the country’s climate and energy landscape. With stricter emissions thresholds and an expanded scope for carbon offsets, the carbon tax overhaul is set to drive major investment in renewable energy. It will also reshape how businesses source electricity. This policy evolution opens new doors, even though some hurdles remain.

We note the tabling of the delayed 2025 National Budget. As with previous budgets, the steps announced by Finance Minister Enoch Godongwana highlighted the need for higher growth rates in the domestic mining sector and the broader economy.

Although many manufacturing and industrial companies set objectives to reduce fossil fuel use, no silver bullets exist in the green fuel space. Supply and logistics constraints, high costs and technological limitations present challenges. Manufacturing companies can implement the green energy transition by investigating more sustainable and lower-carbon fuel alternatives.

Whether it is the South African government’s newly signed carbon tax legislation or the EU’s ‘green’ import taxes, South Africa’s manufacturing sector faces significant challenges. These challenges are centered around sustainability and adapting to new environmental regulations.

A reduction in carbon emissions is integral to South Africa's global commitment to achieve net zero. The South African government strategically introduced carbon tax to combat global warming by encouraging a low carbon economy.

The notion of a polycrisis – various systemic crisis occurring simultaneously and interacting with one another – has been around for a while but has gained renewed traction for obvious reasons.

We take great pleasure in presenting the eighth edition of the VAT in Africa Guide – Africa re-emerging. This backdrop of renewal informs our theme and purpose of focusing on the re-emergence of African economies and societies which have been affected by the COVID-19 pandemic. 

South Africa’s Minister of Finance, Mr. Enoch Godongwana, delivered his maiden National Budget Speech to the National Assembly on Wednesday, 23 February 2022. A crucial function of the Budget Speech is to provide details of spending and make proposals about how the priorities outlined in the President’s State of the Nation Address will be funded.

As was widely expected, the government did not announce any increase in the VAT rate, although the Minister has stated that the tax rate will need to increase in the future. The proposed amendments affecting VAT are largely technical in nature.