Hon Chairperson, hon Deputy Minister of Finance Gungubele and hon members, welcome. Carbon Tax will play a role in achieving the objectives set out in the National Climate Change Response Policy of 2011 and contribute towards meeting South Africa's commitments to reduce greenhouse gas emissions. Reducing the impacts of climate change through facilitating a viable and fair transition to a low-carbon economy is essential to ensure an environmentally sustainable economic growth path for South Africa.
The Bill gives effect to the polluter-pays principle, prices greenhouse gas emissions and aims to ensure that businesses and households take
these costs into account in their production, consumption and investment decisions. The tax will assist in reducing emissions and ensuring South Africa meets its commitments under the 2015 Paris Climate Agreement. It will be reviewed after three years. The SA Revenue Service, Sars, and the National Department of Environmental Affairs will jointly administer the tax. The Carbon Tax Bill includes the detailed and revised carbon tax design features as per the Carbon Tax Policy Paper of 2013 and the Carbon Offsets Paper of 2014 and takes into account public comments received following extensive stakeholder consultation since 2011. The Carbon Tax Bill provides for the introduction of the carbon tax in a phased manner.
The gradual approach takes cognisance of the developmental challenges facing South Africa and South Africa's Nationally Determined Contribution commitments made under the Paris Agreement to reduce greenhouse gas emissions. This will also help encourage investments in and uptake of more energy efficient and low carbon technologies.
The Select Committee on finance received its briefing on 6 March and held public hearings on 12 March 2019. The submissions on the Bill which we received came from 14 stakeholders. During the public hearings, the National Treasury and Sars responded to the issues raised by the stakeholders.
The amendments made to the Bill take into account comments of stakeholders, namely, section 6, section 17 and schedule 2 referring to transport, domestic aviation and waste incineration.
The implementation date of the carbon tax has been changed from 1 January 2019 to 1 June 2019. To ensure an effective carbon tax policy, a review of the impact of the tax will have to be conducted after as I said three years of implementation of the tax and will have to take into account the progress made to reduce these gas emissions.
The Select Committee on Finance, having considered the Carbon Tax Bill [B 46Bf2018] (National Assembly - section 77), referred to it, and classified by the JTM as a section 77 Bill, reports that it has agreed to the Bill without amendments. _The DA reserved their position on the Bill. I table this report for consideration by the House. Thank you, Chair.
Debate concluded.
Declarations of vote:
Hon Chairperson and fellow South Africans, the DA accept the reality of greenhouse gas emissions, climate change and of course the associated consequences thereof. As the DA, we have consistently
held the view that there should be no increases in taxation and that instead, there should be decreases in taxation in order of course to stimulate the economy for those that you can then comprehend.
This Carbon Tax Bill does not consider the country's state of economic development as well as its global contribution to greenhouse emissions. Eskom's coal-fired power stations remain the single biggest carbon emitter and while they will largely be exempted from this tax, Eskom cannot even in the medium term afford any additional costs whatsoever.
We believe the first period until 2022 should then be considered a trial, not only to adjust risen tax-free thresholds, but to re-evaluate the need for the carbon tax in South Africa's carbon reduction strategy.
We remain very concerned indeed that the revenue from carbon tax will also not necessarily be channelled back for specific environmental use. Who knows colleagues? Who knows? Perhaps it will also be used to bailout Eskom again, ANC's style. It should be noted that the corporations and businesses are opposed to the Carbon Tax Bill because of the negative impact it will have on how businesses operate and their abilities to create jobs. This Bill does not allow for companies to
achieve 100% tax free status. The DA therefore does not support the Bill. I thank you, Chair.
Hon Chairperson, we in the ANC who are governing this country knows all too well that climate change is inextricably linked to almost all facets of our society particularly socioeconomic progression as resources such as water, fish stock in a form of food, fiber, biodiversity, amongst others, determined the production potential of many sectors of the economy which in turn affect human development aspirations of the country because we take a responsibility for all people of this country.
The South African economy is dependent upon primary sectors such as agriculture particularly mineral extractives which are natural resources dependent and energy intensive with the energy generation being very important as it also subject us to the challenges of climate change.
The National Development Plan developed by this government which is a vision for the future, includes excess to affordable food, safe and reliable water supply also for people here in Western Cape where they don't have water. We are saying this approach of the NDP cannot only be based on an economic model or assumptions or infinite availability of
these and other resources. This Carbon Tax Bill helps us as a ruling party, helps us as a country to deal with the challenges that we are confronting as South Africans committed to working together. The Carbon Tax Bill will assist in at least a cost effective manner in reducing carbon taxes and strong carbon emissions and ensuring that South Africa will meet the NDC commitments as part of our ratification of the Paris Agreement. The Paris Agreement emphasises common but differentiated responsibilities in the sky.
The President of South Africa, hon Cyril Ramaphosa, emphasised during the state of the nation address 2019, the impotence of dealing with climate change to protect the poor and vulnerable people of our society. Therefore, this Act is a way of the ANC and this government taking action to look at what we have committed to and also in our manifesto which is being sensitive to the plight of poor and vulnerable people of South Africa. The main aim of the Carbon Tax Bill is to put the price ... [Inaudible.] Thank you, Chair. [Time expired.]
Question put: That the Bill be agreed to.
Bill accordingly agreed to, in accordance with section 75 of the Constitution.
