Overview
- Treasury’s 2026 Budget review kept the carbon tax in place and raised the rate to R308 per tonne from 1 January, up from R236.
- News reports say Energy and Electricity Minister Kgosientsho Ramokgopa is developing a proposal to pause or suspend the tax, with no formal public response yet from the Presidency or ministries.
- The levy raises about R1.5‑billion a year, with advocates urging revenue recycling to support vulnerable households and a just transition.
- Academics and civil society warn that rollback risks over R220‑billion in concessional climate finance and could shift costs onto exporters through the EU’s Carbon Border Adjustment Mechanism.
- Industry voices emphasise timing and policy overlap rather than outright repeal, while past lobbying by major emitters such as Sasol and Eskom has helped secure concessions.