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).

Section 11 (CTA) – Performance allowance

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11. Performance allowance

(1)     A taxpayer that has implemented measures to reduce the greenhouse gas emissions of that taxpayer in respect of a tax period must receive an allowance in respect of that tax period not exceeding five per cent of the total greenhouse gas emissions of that taxpayer during that tax period, determined in accordance with the formula:

Z = (A  of  B – C) x D

in which formula-

(a)     “Z” represents the percentage to be determined that must not be less than zero;

(b)     “A” represents-

(i)      the sector or subsectionector greenhouse gas emissions intensity benchmark as prescribed by the Minister; or

(ii)     where no value is prescribed as required by subparagraph (i), the number zero;

(c)     “B” represents the measured and verified greenhouse gas emissions intensity of a taxpayer in respect of a tax period;

(d)     “C” represents the number one; and

(e)     “D” represents the number 100.

(2)     For the purposes of this section “measures” include action taken to reduce greenhouse gas emissions in respect of a tax period.

Section 10 (CTA) – Trade exposure allowance

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10. Trade exposure allowance

A taxpayer that is liable for the carbon tax in respect of greenhouse gas emissions must receive an allowance up to a maximum of ten per cent in respect of trade exposure as measured by value of exports plus imports divided by the total production by sector or subsector that must be determined in a manner prescribed by the Minister by regulation.