The carbon tax legislation specifies that the initial rate of carbon tax of R120 per tonne will be increased by consumer price index (CPI) +2% per year until 31 December 2022, and thereafter the rate of tax will be increased only by CPI. Therefore, the carbon tax rate will increase from R144 per tonne of carbon dioxide equivalent (CO2e) to R159 per tonne of CO2e for the 2023 calendar year.
Source KPMG
