The impact of carbon tax on financial and sustainability reporting in South Africa: the case of motor cehicle manufactures

Abstract

Sustainability reporting in South Africa has emerged strongly in the last decade with evidence suggesting that corporate social responsibility assurance prevalence is growing among the top 100 publicly-listed companies. Multinational motor vehicle manufacturers will have to comply with all sustainable reporting requirements that incorporate South African motor vehicle subsidiary company results. Carbon excise tax was implemented on all passenger motor vehicles on 1 September, 2010 in South Africa. From an accounting perspective, the adequacy of carbon tax recognition and disclosures has not been assessed in South Africa.

This paper examines the adequacy of carbon tax accounting disclosures by local motor vehicle manufacturers that are subject to such a tax as well as the compliance level of the related multinational motor vehicle holding companies in terms of sustainable reporting.