JOHANNESBURG, May 27 (Xinhua) -- The Carbon Tax Act which South African President Cyril Ramaphosa has signed into law brings about different opinions, with some worry that the consumers would pay the bill and some hail the environmental-friendly measure.
Jannie Rossouw, head of School of Economic & Business Sciences in Wits University, said on Monday that consumers at all levels would find themselves paying more once the act comes into effect.
"When a tax is raised, somebody pays for it. Consumers will pay more. We might see higher prices and therefore inflation rate could rise reflecting the effect of higher taxes," he told Xinhua.
His remarks come after Ramaphosa signed into the act which would see South Africans paying more taxes at fuel pumps from June 1. The Carbon Tax Act is aimed at reducing carbon emissions in the country.
South Africa is among the countries with higher levels of carbon emissions in Africa.
Rossouw said while businesses might be able to pass these costs on consumers, already struggling consumers would not have the same option.
"This will put added pressure on already highly indebted and struggling consumers," he said, adding that the tax would also increase production costs and particularly influence small businesses.
Labor federation Congress of the South African Trade Union (Cosatu) said it welcomes the act as effects of climate change were clear.
"We agree with the government and progressive civil society that climate change poses an existential threat to the survival of humanity and that decisive action is needed now," Cosatu's parliamentary head Matthew Parks said.
He cited the recent floods which ravaged some countries in Southern Africa as a clear sign of climate change.
