SEIFSA asked the government to drop carbon tax plan

The Federation of Steel and Engineering of South Africa (Seifsa) has called on the government to follow Australia's lead by scrapping the proposed carbon taxes. She said it was in the best interest of our ailing economy.

CEO Seifsa said "The South African economy has been under siege in recent years, with rather modest growth in the environment. It makes no sense at all to seek to burden local businesses further by introducing a carbon tax."
The Australian government has taken steps to eliminate the carbon tax. South Africa, already hit by high prices for electricity, fuel and port services, should simply postpone its carbon tax until 2016, Seifsa said.

South Africa's largest steelmaker, ArcelorMittal SA, is concerned about a proposed 2015 treasury carbon tax implementation. It is difficult to accurately assess the financial implications of the proposed tax due to lack of clarity, but estimates currently indicate that it could be over Rs 600 million per year.

At the same time, interaction with the national treasury raises concerns. Meanwhile, South Africa's second-largest steelmaker, Russia's Evraz Highveld Steel & Vanadium, said last month the issues raised serious doubts for the foreseeable future.

The volatile labor market in South Africa is one of the main risks to economic stability, and the economy has also been under pressure from intermittent electricity supplies and marked increases in energy tariffs.