Carbon Tax Act Citation

Reproduced under Goverment Printer’s Authorisation (Authorisation No. 11837) dated 30 November 2020.

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CARBON TAX ACT 15 OF 2019

(English text signed by the President)

[Assented to 22 May 2019]

[Commencement date: 1 June 2019]

as amended by:

Rates and Monetary Amounts and Amendment of Revenue Laws Act 22 of 2020

Taxation Laws Amendment Act, No. 23 of 2020

Rates and Monetary Amounts and Amendment of Revenue Laws Act 19 of 2022

Taxation Laws Amendment Act 20 of 2022

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Taxation Laws Amendment Act 17 of 2023

Rates and Monetary Amounts and Amendment of Revenue Laws Act 19 of 2023

ACT

To provide for the imposition of a tax on the carbon dioxide (CO2) equivalent of greenhouse gas emissions; and to provide for matters connected therewith.

PREAMBLE

SINCE the causality of the increasing of anthropogenic greenhouse gas emissions in the atmosphere and the global climate change has been scientifically confirmed;

AND SINCE it has consequently become necessary to manage the inevitable climate change impact through interventions that build and sustain South Africa’s social, economic and environmental resilience and emergency response capacity;

AND SINCE it has also become necessary to make a contribution to the global effort to stabilise greenhouse gas concentrations in the atmosphere at a level that avoids dangerous anthropogenic interference with the climate system within a timeframe that enables economic, social and environmental development to proceed in a sustainable manner;

AND SINCE the costs of remedying pollution, environmental degradation and consequent adverse health effects and of preventing, controlling or minimising further pollution, environmental damage or adverse health effects must be paid for by those responsible for harming the environment (the polluter pays principle);

AND SINCE government is desirous to utilise a package of measures in an effort to address the challenges posed by climate change;

AND SINCE this package of measures will be achieved by the deployment of a range of measures to support the system of desired emissions reduction outcomes, including the appropriate pricing of carbon and economic incentives, as well as the use of emissions offsets;

AND SINCE government is of the view that imposing a tax on greenhouse gas emissions and concomitant measures such as providing tax incentives for rewarding the efficient use of energy will provide appropriate price signals to help nudge the economy towards a more sustainable growth path,

BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:-

Carbon Tax Act – Index

TABLE OF CONTENTS

Part I

Definitions and general provisions relating to imposition of carbon tax

Section 1 – Definitions

Section 2 – Imposition of carbon tax

Section 3 – Persons subject to tax

Section 4 – Tax base

Section 5 – Rate of tax

Section 6 – Calculation of amount of tax payable

Part II

Allowances

Section 7 – Basic tax-free allowance

Section 8 – Allowance for industrial process emissions

Section 9 – Allowance in respect of fugitive emissions

Section 10 – Trade exposure allowance

Section 11 – Performance allowance

Section 12 – Carbon budget allowance

Section 13 – Offset allowance

Part III

Limitation of allowances

Section 14 – Limitation of sum of allowances

Part IV

Administration, tax period and payment of tax

Section 15 – Administration

Section 16 – Tax period

Section 17 – Payment of tax

Part V

Miscellaneous

Section 18 – Reporting

Section 19 – Regulations

Section 20 – Amendment of laws

Section 21 – Short title and commencement

Schedule 1

Schedule 2

Schedule 3