A further R1 billion is added for electricity demand management, together with tax incentives for investment in energy-
Tax tips continue to make up the majority of the tips submitted. Mr. Saul Margolis of
Johannesburg called for a tax to be imposed on incandescent light bulbs to encourage
people to use compact fluorescent lightbulbs and save energy. Mr. Margolis, I have
asked that this be included in the revenue proposals this year.
We propose taking further steps to encourage energy efficiency and reduce harmful
emissions, some of which have tax implications.
• An incentive for investments by companies in energy-efficient equipment will be
introduced, in the form of a supplementary depreciation allowance.
• The levy on plastic shopping bags will be increased from 3 cents to 4 cents.
• An increase is proposed in the international air passenger departure tax, which was
last raised in 2005/06.
• The existing excise duties on motor vehicles will be adjusted to take into account
It is important, furthermore that we should encourage South African companies to take
advantage of the clean development mechanism established in the Kyoto Protocol. A
favourable tax treatment will therefore be introduced for the recognition of income
derived from the sale of emission reductions, as certified through this mechanism.