The Carbon Tax Act No. 15 of 2019 specifies that the initial rate of carbon tax of R120 per tonne will be increased by consumer price inflation (CPI) +2% per year until 31 December 2022, and thereafter the carbon tax rate will be increased only by CPI. Therefore, the carbon tax rate will increase by 19.49% from R159 to R190 per tonne of CO2e for the 2024 calendar year.
In addition, the carbon fuel levy will increase to 11 cents per litre for petrol and 14 cents per litre for diesel, effective 3 April 2024. The carbon tax cost recovery quantum for the liquid fuels sector increased from 0.66c/litre to 0.69c/litre, effective 1 January 2024.
Source KPMG
