increases the overall tax burden in South Africa. Many companies in South Africa are already struggling to turn the profit. It is not clear that all companies affected by the Carbon Tax who had adequate financial and human resources to manage the costs linked to compliance. It is a complex piece of legislation and it is rightly to be a costly exercise for many businesses. Furthermore, the economic impact of the Carbon Tax hinges heavily on the design of the tax and the manner in which Treasury utilises the revenue collected.