Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube announced in Parliament that the government will soon present a constitution to operationalize the use of Carbon Tax funds.
This tax is collected to support initiatives aimed at addressing the country’s negative environmental impacts. However, concerns have arisen regarding whether the collected funds are being utilized appropriately.
One institution expected to benefit from the fund, the Environmental Management Agency (EMA), has reported a lack of adequate resources to implement its programs.
In addressing this issue, Minister Mthuli Ncube stated that they are finalizing operational procedures.
“Madam Speaker, the carbon tax collection for the period 2022 amounted to 27.5 billion ZWG, and for 2023, 21.4 billion ZWG,” he said. “Collections from January to August 2024 totaled USD 52.8 million, alongside 23.7 million ZWG.”
He emphasized that the carbon tax is levied to benefit the consolidated revenue fund, specifically for addressing negative environmental impacts.
“The constitution establishing the Carbon Tax Sinking Fund will be tabled before Parliament soon, following the finalization of procedures to operationalize the fund. Once established, the funds can be transferred to the Carbon Tax Sinking Fund and used to mitigate environmental challenges,” he explained.
Minister Mthuli was responding to a question from Honourable Discent Bajila, who sought information on Carbon Tax collections for 2022 and 2023 and how these funds were allocated.
