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.
Declarations of vote: