Carbon tax poses a further setback for metal industry – Solidarity
15 March 2018
Trade union Solidarity today expressed its concern about the controversial carbon tax bill. The government intends to introduce this tax in 2019.
Marius Croucamp, Solidarity’s deputy general secretary for the metal and engineering industry, contends that the proposed tax is a recipe for higher costs and economic inefficiency. This tax discourages production and expansion of production. Given South Africa’s need for economic growth, this tax is a further restraint we cannot afford,” Croucamp said.
Croucamp also says that the extra tax poses a serious threat to the sustainability of steel companies as the industry is already under major pressure. “Higher costs will make the industry even less competitive,” Croucamp added.
Solidarity is concerned that this tax could lead to huge job losses in the metal and steel industry. “Higher steel costs could result in plants having to shut down and people losing their livelihood. Energy and fuel costs will also rise as a result of the tax, which would be another setback for consumers,” Croucamp warned.