The objective of this research and aim of this dissertation was to determine the potential impact of the introduction of a carbon emissions tax (hereafter CET) on the South African mining industry and this has been achieved by addressing the following three areas of research: Most urgently, a literature review was required in order to obtain an understanding of why a carbon tax or alternative system was required. A detailed understanding of the functioning of these systems was invaluable to the outcome of the study. The survey conducted, confirmed the fact that global warming and related climate change brought about by human interference, constitute both global and national complications. The study confirmed that market based instruments can assist in addressing this problem and that these are generally considered to be more effective than traditional command-and-control policies. Notwithstanding this finding, in order to ensure efficacy, careful consideration should be given to the economic climate in which they are to be implemented. Secondly, a literature review was essential in order to fully comprehend the nature of the South African economy and specifically the South African mining industry’s contribution to the aforementioned problem. The importance of the industry to the economy had to be acknowledged. It was then established that the South African economy, and in particular the South African mining industry, contribute to this predicament due to their considerable dependence on coal fired power stations for the supply of electricity. The study revealed that should this industry be adversely affected by the proposed taxation, the economy as a whole would suffer. Finally, a literature review as well as quantitative examples were used to estimate the impact of CET on the South African mining industry. This outcome was achieved by evaluating the results of taxation as opposed to the objectives of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The study found that the effect on most of the objectives of the MPRDA, and especially those related to job creation, economic growth and equal access for all applicants on entering the arena of the mining industry, may well be affected adversely by the implementation of the proposed CET, as the tax was found to impact negatively on the industry’s profits. It has also been assessed that the iron ore sector will be the most affected sector and that smaller companies will be affected to a larger degree than larger companies. The modus operandi and selection of allocated beneficiaries when allocating the revenue collected from the proposed CET by the National Treasury were also found to play a significant role in whether or not the objectives of the MPRDA were positively or negatively influenced by the implementation of the tax. The outcome of the study performed on the research question confirmed that, if said effect of the proposed CET on the South African mining industry was to be compared to the objective of the MPRDA, both positive and negative implications could be identified. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014

The objective of this research and aim of this dissertation was to determine the potential impact of the introduction of a carbon emissions tax (hereafter CET) on the South African mining industry and this has been achieved by addressing the following three areas of research: Most urgently, a literature review was required in order to obtain an understanding of why a carbon tax or alternative system was required. A detailed understanding of the functioning of these systems was invaluable to the outcome of the study. The survey conducted, confirmed the fact that global warming and related climate change brought about by human interference, constitute both global and national complications. The study confirmed that market based instruments can assist in addressing this problem and that these are generally considered to be more effective than traditional command-and-control policies. Notwithstanding this finding, in order to ensure efficacy, careful consideration should be given to the economic climate in which they are to be implemented. Secondly, a literature review was essential in order to fully comprehend the nature of the South African economy and specifically the South African mining industry’s contribution to the aforementioned problem. The importance of the industry to the economy had to be acknowledged. It was then established that the South African economy, and in particular the South African mining industry, contribute to this predicament due to their considerable dependence on coal fired power stations for the supply of electricity. The study revealed that should this industry be adversely affected by the proposed taxation, the economy as a whole would suffer. Finally, a literature review as well as quantitative examples were used to estimate the impact of CET on the South African mining industry. This outcome was achieved by evaluating the results of taxation as opposed to the objectives of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The study found that the effect on most of the objectives of the MPRDA, and especially those related to job creation, economic growth and equal access for all applicants on entering the arena of the mining industry, may well be affected adversely by the implementation of the proposed CET, as the tax was found to impact negatively on the industry’s profits. It has also been assessed that the iron ore sector will be the most affected sector and that smaller companies will be affected to a larger degree than larger companies. The modus operandi and selection of allocated beneficiaries when allocating the revenue collected from the proposed CET by the National Treasury were also found to play a significant role in whether or not the objectives of the MPRDA were positively or negatively influenced by the implementation of the tax. The outcome of the study performed on the research question confirmed that, if said effect of the proposed CET on the South African mining industry was to be compared to the objective of the MPRDA, both positive and negative implications could be identified. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014