4. Tax base
(1) Notwithstanding subsection (2), the carbon tax must be levied in respect of the sum of the greenhouse gas emissions of a taxpayer in respect of a tax period expressed as the carbon dioxide equivalent of those greenhouse gas emissions resulting from fuel combustion and industrial processes, and fugitive emissions in accordance with an emissions determination methodology approved by the Department of Forestry, Fisheries and the Environment.
[Subsection (1) substituted by section 91(1)(a) of Act 34 of 2019 and by section 54(1)(a) of Act 5 of 2026 deemed effective on 1 January, 2024 (the words “Nothwistanding” and “emmissions” as published in the Government Gazette have been corrected to read “Notwithstanding” and “emissions”, respectively)]
(2) Where a taxpayer uses an emissions determination methodology in respect of the sum of the greenhouse gas emissions of a taxpayer in respect of a tax period—
(a) employing readily available statistical data on the intensity of processes (Activity data) and emission factors as specified in the “IPCC Guidelines For National Greenhouse Gas Inventories” (2006)); or
(b) employing the statistical data and emission factors as specified in paragraph (a) including country-specific emission factors,
in respect of greenhouse gas emissions resulting from fuel combustion, and industrial processes, and fugitive emissions the carbon tax must be levied in respect of the sum of the greenhouse gas emissions of a taxpayer in respect of a tax period expressed as the carbon dioxide equivalent of those greenhouse gas emissions resulting from-
(a) fuel combustion in respect of that tax period that is a number constituted by the sum of the respective numbers determined for each type of fuel in respect of which a greenhouse gas is emitted in respect of that tax period which respective numbers must be determined in accordance with the formula:
E = (A x B)
in which formula-
(i) “E” represents the number to be determined;
(ii) “A” represents the mass of any one type of the fuel expressed in tonne that is the source of the greenhouse gas emission, other than any fuel utilised for the purposes of international aviation and maritime transport;
(iii) “B” represents the greenhouse gas emission factor in carbon dioxide equivalent per tonne that must be determined in accordance with the formula:
X = {[(C x 1) + (M x 23) + (N x 296)] x D}/Y
in which formula-
(aa) “X” represents the number to be determined;
(bb) “C” represents the carbon dioxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 1 of Schedule 1 with the number in the corresponding line of the column “CO2 (KGCO2 of TJ)” of that table;
(cc) “M” represents the methane emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 1 of Schedule 1 with the number in the corresponding line of the column “CH4 (KGCH4 of TJ)” of that table;
(dd) “N” represents the Nitrous Oxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 1 of Schedule 1 with the number in the corresponding line of the column “N2O (KGN2O/TJ)” of that table;
[Item (dd) amended by section 91(1)(d) of Act 34 of 2019 deemed effective on 1 June, 2019]
(ee) “D” represents the net default calorific value (terajoule per tonne) of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 1 of Schedule 1 with the number in the corresponding line of the column “DEFAULT CALORIFIC NET VALUE (TJ/TONNE)” of that table;
[Item (ee) amended by section 91(1)(d) of Act 34 of 2019 and substituted by 91(1)(e) of Act 34 of 2019 both deemed effective on 1 June, 2019]
(ff) “Y” represents the number 1000;
[Subparagraph graph (iii) amended by section 91(1)(c) of Act 34 of 2019 deemed effective on 1 June, 2019. Item (ff) added by section 91(1)(d) of Act 34 of 2019 deemed effective on 1 June, 2019]
(b) fugitive emissions that is a number constituted by the sum of the respective numbers determined for each type of commodity, fuel or technology in respect of which the greenhouse gas is emitted in respect of a tax period which respective numbers must be determined in accordance with the formula:
F= (N x Q)
in which formula-
(i) “F” represents the number to be determined;
(ii) “N” represents the mass expressed in tonne in the case of solid fuels or the volume of each type of fuel expressed in cubic metres in the case of fuels other than solid fuels or the amount of syngas produced in (TJ) with respect to coal to liquids or total amount of natural gas input with respect to gas to liquids; or mass of product produced expressed in tonne in respect of which the greenhouse gas is emitted, mass of fuel wood expressed in tonne that is the source of greenhouse gas emission, in respect of the greenhouse gas emission; and
(iii) “Q” represents the greenhouse gas emission factor in carbon dioxide equivalent per tonne, cubic metres or product produced-
(aa) in the case of oil and natural gas, biochar, coke and charcoal production (per charcoal produced), that must be determined in accordance with the formula:
X = [(C x 1) + (M x 23) + (N x 296)] x Y
in which formula—
(a) “X” represents the number to be determined;
(b) “C” represents the carbon dioxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CO2” of that table;
(c) “M” represents the methane emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CH4” of that table;
(d) “N” represents the Nitrous Oxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “N2O” of that table;
(e) “Y” represents the number 1000; and
[Item (aa) amended by section 54(1)(c) of Act 5 of 2026 deemed effective on 1 January, 2024]
(bb) in the case of coal mining and handling, that must be determined in accordance with the formula:
X = (M x D x 23) x Y
in which formula—
(a) “X” represents the number to be determined;
(b) “M” represents the methane emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CH4” of that table;
(c) “D” represents the density factor for coal mining and handling methane emissions (0.67 x 10-6 Gg/m3);
(d) “Y” represents the number 1000; and
[Item (iii) substituted by section 91(1)(f) of Act 34 of 2019 deemed effective on 1 June, 2019]
(cc) in the case of charcoal production (fuel wood input), that must be determined in accordance with the formula-
X = [(C × 1) + (M × 23) + (N × 296) × D] / Y
in which formula-
(a) “X” represents the number to be determined;
(b) “C” represents carbon dioxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CO2” of that table;
(c) “M” represents methane emissions of a fuel type deter-mined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CH4” of that table;
(d) “N” represents Nitrous Oxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “N2O” of that table;
(e) “D” represents Net Calorific Value in the range of 0.0149 to 0.058(TJ/TONNE); and
(f) “Y” represents the number 1000; and
[Item (cc) added by section 54(1)(d) of Act 5 of 2026 deemed effective on 1 January, 2024]
(dd) in the case of coal and gas to liquids and other solid fuel transformation activities, which must be determined in accordance with the formula—
X = (C × 1) + (M × 23) + (N × 296)
in which formula-
(a) “X” represents the number to be determined;
(b) “C” represents carbon dioxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CO2” of that table;
(c) “M” represents methane emissions of a fuel type deter-mined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “CH4” of that table; and
(d) “N” represents Nitrous Oxide emissions of a fuel type determined by matching the fuel type listed in the column “fuel type” in Table 2 of Schedule 1 with the number in the corresponding line of the column “N2O” of that table; and
[Subparagraph (iii) substituted by section 91(1)(f) of Act 34 of 2019 deemed effective on 1 June, 2019. Item (dd) added by section 54(1)(d) of Act 5 of 2026 deemed effective on 1 January, 2024]
[Paragraph (b) amended by section 54(1)(b) of Act 5 of 2026 deemed effective on 1 January, 2024]
(c) industrial process in respect of a tax period that is a number constituted by the sum of the respective numbers determined for each type of commodity, fuel or technology in respect of which the greenhouse gas is emitted in respect of that tax period which respective numbers must be determined in accordance with the formula:
P = (G x H)
in which formula-
(i) “P” represents the amount to be determined that must not be less than zero;
(ii) “G” represents the mass of each raw material used or product produced expressed in tonne in respect of which the greenhouse gas is emitted in respect of that tax period; and
(iii) “H” represents the greenhouse gas emission factor in carbon dioxide emissions equivalent per tonne for each raw material used or product produced that must be determined in accordance with the formula:
X = (C x 1) + (M x 23) + (N x 296) + (H x 11 900) + (T x 5 700) + (S x 22 200)
in which formula-
(aa) “X” represents the number to be determined;
(bb) “C” represents the carbon dioxide emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneCO2/tonne product” of that table;
[Item (bb) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
(cc) “M” represents the methane emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneCH4/tonne product” of that table;
[Item (cc) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
(dd) “N” represents the Nitrous Oxide emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneN2O/ tonne product” of that table;
[Item (dd) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
(ee) “H” represents the Hexafluoroethane (C2F6) emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneC2F6/tonne product” of that table;
[Item (ee) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
(ff) “T” represents the carbon tetrafluoride (CF4) emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneCF4/tonne product” of that table; and
[Item (ff) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
(gg) “Section” represents the Sulphur hexafluoride (SF6) emissions of a raw material or product determined by matching the fuel type listed in the column “SOURCE CATEGORY ACTIVITY/RAW MATERIAL/PRODUCT” in Table 3 of Schedule 1 with the number in the corresponding line of the column “tonneSF6/tonne product” of that table.
[Item (gg) substituted by section 91(1)(g) of Act 34 of 2019 deemed effective on 1 June, 2019]
[Subsection (2) amended by section 91(1)(b) of Act 34 of 2019 deemed effective on 1 June, 2019]
(3) The Minister may, by notice in the Gazette, amend Table 1, Table 2 and Table 3 to Schedule No. 1–
(a) in order to give effect to any amendments to the emission factors and net calorific values for fuel types and emission activities as approved by the Department of Forestry, Fisheries and the Environment; and
(b) any notice under this section in any calendar year shall, unless Parliament otherwise provides, lapse on the last day of the next calendar year, but without detracting from the validity of such notice before it has so lapsed.
[Subsection (3) added by section 54(1)(e) of Act 5 of 2026 deemed effective on 1 January, 2024]