Carbon tax has attracted attention as an instrument of climate action for transiting towards the objective of stabilising global temperatures below 2 °C. Its significance as a response to climate change is, however, disputed. Also, its possible implications on key fundamental human rights of poor populations are rarely discussed. South Africa enacted a Carbon Tax Act in 2019 amid the challenge of poverty and its commitments to both climate actions and human rights. This paper interrogates the significance of the Carbon Tax Act and clarifies the potential implications that it may have on key human rights of poor populations. It recommends the need to channel the revenue generated from the implementation of the Carbon Tax Act to address its potential adverse impact on human rights of poor populations in South Africa.