Evaluating the fairness of the proposed carbon tax in South Africa
Oro, Ufuo Oro
At the 2013 budget presentation, the South African government indicated its intention to introduce carbon tax starting 1 January, 2015 at the rate of R120 per ton of Co2 equivalent. Prior research confirmed that carbon taxes have the potential to increase price levels, make exports uncompetitive and reinforce income inequality. It was suspected that the proposed carbon tax in the face of other similar taxes in South Africa would result in similar outcome. Furthermore, the socio-economic circumstance of South Africa could make the tax unfair to taxpayers. The object of this research was to evaluate the fairness of the proposed carbon tax in South Africa using the tenets of tax fairness Proposed by Smith (1776). The research methodology adopted was content analysis and correspondence analysis to analyse survey responses. The results of the analysis confirmed that the proposed carbon tax would result in price increases, make exports uncompetitive and reinforce income inequality. It was concluded that the proposed carbon tax would be unfair to taxpayers if implemented as currently designed
Thesis (M.Com. (Accountancy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2014.