Category: Carbon Tax Act 15 of 2019

Section 3 (CTA) – Persons subject to tax

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3. Persons subject to tax

A person is-

(a)     a taxpayer for the purposes of this Act; and

(b)     liable to pay an amount of carbon tax calculated as contemplated in section 6 in respect of a tax period as specified in section 16,

if that person conducts an activity in the Republic, resulting in greenhouse gas emissions, equal to or above the threshold determined by matching the activity listed in the column “Activity/Sector” in Schedule 2 with the number in the corresponding line of the column “Threshold” of that table.

[Section 3 amended by section 90(1) of Act 34 of 2019 deemed effective on 1 June, 2019]

Section 19 (CTA) – Regulations

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19. Regulations

The Minister must make regulations in respect of-

(a)     the sector or subsectionector greenhouse gas emissions intensity benchmark for the purposes of symbol “A” in section 11(1);

(b)     the manner of determining the amount of the trade exposure allowance contemplated in section 10; and

(c)     carbon offsets contemplated in section 13 regarding-

(i)      the projects or activities in respect of which an offset is generated;

(ii)     the limitation on the carbon offset allowance;

(iii)    offset duration periods;

(iv)    the institution, board or body that must administer the offset allowance;

(v)     the powers and responsibilities of the institution, board or body contemplated in subparagraph (iv);

(iv)    the procedure that must be followed in claiming the offset allowance;

(vi)    the records that must be kept in respect of administering the offset allowance; and

(vii)   any other matter necessary for the regulation of the utilisation of the carbon offsets.

Section 18 (CTA) – Reporting

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Part V

 Miscellaneous

18. Reporting

Despite Chapter 6 of the Tax Administration Act, the Commissioner must annually submit to the Minister a report, in the form and manner that the Minister may prescribe, within six months from the date of submission of environmental levy accounts and payments contemplated in section 17 advising the Minister in respect of that tax period of-

(a)     the total amount of greenhouse gas emissions reported in respect of which taxpayers are liable for the carbon tax; and

(b)     the amount of carbon tax collected.

Section 15 (CTA) – Administration

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Part IV

 Administration, tax period and payment of tax

15. Administration

(1)     The Commissioner must administer the provisions of this Act as if the carbon tax were an environmental levy as contemplated in section 54A of the Customs and Excise Act, 1964 (Act No. 91 of 1964), that must be collected and paid in terms of the provisions of that Act.

(2)     For the purposes of subsection (1), administrative actions, requirements and procedures for purposes of submission and verification of accounts, collection and payment of the carbon tax as an environmental levy or the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Customs and Excise Act, 1964.

Section 14 (CTA) – Limitation of sum of allowances

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Part III

Limitation of allowances

14. Limitation of sum of allowances

A taxpayer, other than a taxpayer in respect of which the maximum total allowance stipulated Schedule 2 constitutes 100 per cent, must only receive the sum of the allowances contemplated in Part II in respect of a tax period to the extent that the sum of those allowances does not exceed 95 per cent of the total greenhouse gas emissions of that taxpayer in respect of that tax period as determined in terms of the column “Maximum total allowances %” in Schedule 2.

Section 13 (CTA) – Offset allowance

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13. Offset allowance

(1)     Subject to subsection (2), a taxpayer may reduce the amount in respect of the carbon tax for which the taxpayer is liable in respect of a tax period by utilising carbon offsets as prescribed by the Minister.

[Subsection (1) substituted by section 97(1) of Act 34 of 2019 deemed effective on 1 June, 2019]


(2)     The reduction of the liability for the carbon tax allowed in terms of subsection (1) must not exceed so much of the percentage of the total greenhouse gas emissions of a taxpayer in respect of a tax period as is determined by matching the line in the column “Activity of Sector” with the percentage in the corresponding line of the column “Offsets allowance %” in Schedule 2.

Section 12 (CTA) – Carbon budget allowance

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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 2024, must receive an additional allowance of five per cent of the total greenhouse gas emissions in respect of a tax period.

[Subsection (1) substituted by section 64(1) of Act 20 of 2021 and by section 66(1) of Act 17 of 2023 deemed effective on 1 January 2023]

 

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