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Fin24 reports that there has been largely negative reaction to Finance Minister Tito Mboweni's announcement on Wednesday that a Carbon Tax - which forms part of government's efforts to deal with climate change - will be instituted in early June on petrol and diesel.
The tax is based on the "polluter pays" principle. The Automobile Association (AA) said the tax was "grossly unfair" as South Africans would be paying an emissions tax on "inferior quality fuel" despite not having access to higher quality fuels, as available in many other markets in the world. The Organisation Undoing Tax Abuse (Outa) raised concerns that the tax would push up the price of consumer goods, along with other fuel levy increases. "Just as the plastic bag tax has not changed consumer behaviour or reduced pollution, and the funds were not used for recycling initiatives as initially promised, this carbon tax on petrol will just be another revenue stream for government’s coffers," Outa claimed. Labour federation Cosatu commented that the carbon tax, in addition to an increase in the sugar beverages tax, was an indication that government had abandoned previous commitments to protect vulnerable workers.
- Read the original of Lameez Omarjee’s report on this matter in full at Fin24
Get other news reports at the SA Labour News home page