The Minister of Finance, Mr. Enoch Godongwana, presented National Treasury’s annual 2022/23 budget yesterday. He highlighted that the structure of the economy will need to change to adapt to the needs of addressing climate change. Let's have a look at the changes in terms of energy and sustainability. Section 12L Energy Efficiency Tax Incentive:- No changes to the tax incentive rate were announced but has been extended to 31 December 2025. Section 12L encourages additional and continuous investment in energy efficiency. Carbon tax:- The carbon tax rate will increase from R134 to R144, effective from 1 January 2022. As required by legislation, the carbon fuel levy will increase by 1c to 9c per litre for petrol, and 10c per litre for diesel, from 6 April 2022. The first phase of the carbon tax, with substantial allowances and electricity price neutrality, will be extended to 31 December 2025. However, in line with South Africa's commitments at COP26, the carbon tax rate will be progressively increased every year to reach $20 per tonne. Environmental:- Government plans to investigate an upstream plastic tax and a tax on single-use plastics. The plastic bag levy will be increased from 25c/bag to 28c/bag from 1 April 2022. The incandescent light bulb levy will be increased from R10 to R15 per light bulb from 1 April 2022. Reach out to us for assistance on your energy-efficient and sustainable journey. #budgetspeech2022 #EnergyEfficiency #carboxtax #carbonemissions #sustainability #climatechange #ourplanet #ourfuture https://www.instagram.com/p/CaXyeFlA-w7/?utm_medium=tumblr
