12. Carbon budget allowance

 

(1)     Subject to subsection (2), a taxpayer that conducts an activity that is listed in Schedule 2 in the column “Activity/Sector” and participates in the carbon budget system from 1 January 2021 to 31 December 2025, must receive an additional allowance of five per cent of the total greenhouse gas emissions in respect of a tax period ending on or before 31 December 2025.

[Subsection (1) substituted by section 64(1) of Act 20 of 2021, by section 66(1) of Act 17 of 2023 and by section 57(1)(a) of Act 5 of 2026 deemed effective on 1 January, 2025]

 

(2)     A taxpayer must only receive the allowance as contemplated in subsection (1) if the Department of Forestry, Fisheries and the Environment confirms in writing that that taxpayer is participating in the carbon budget system as referred to in subsection (1).

[Subsection (2) substituted by section 57(1)(b) of Act 5 of 2026 deemed effective on 1 January, 2025]