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Carbon Tax Act Regulations Drawn Up

June 22, 2020

National Treasury

Carbon Tax Act Regulations on trade exposure allowance have been published in Government Gazette 43451.

National treasury published the Regulations in terms of the Carbon Tax Act.

The act was assented to in May 2019 and came into effect on 1 June 2019.

The Carbon Tax Act aims to:


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

The act calls for a R120 per ton carbon tax.

The Regulations focus on determining allowance in respect of trade exposure for purposes of determining carbon tax liability, determining allowance in respect of trade exposure for purposes of determining carbon tax liability in relation to more than one sector and alternative method for calculating trade exposure allowance.

According to Section 10 of the act, 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”.

Allowances are designed to reduce the amount of tax payable.

Annexure A contains a list of economic sectors with the corresponding trade exposure allowances.

The Regulations are deemed to have come into effect on 1 June 2019.

In Gazette 43452, treasury published Regulations on the greenhouse gas emissions intensity benchmark prescribed for the purpose of Section 11 of the act.

The Regulations focus on greenhouse gas emissions intensity benchmark, determining emissions intensity benchmark in respect of more than one emissions intensity benchmark in respect of activity and greenhouse gas emissions intensity determination.

Annexure A contains the various sectors/sub-sectors and the corresponding SA industry benchmark value.

The Regulations are also deemed to have come into effect on 1 June 2019.

In Gazette 43453, treasury published the renewable energy premium in respect of any tax period ending on 31 December 2019 for the purposes of symbol “B” in the formula contained in section 6(2) of the act.

The Council for Debt Collectors, in Gazette 43447, announced that the register of debt collectors is available for inspection at its offices in Pretoria.

In Gazette 43454, treasury corrected Notice 356 on the commencement of the Financial Sector Regulation Act published in March 2020 by the substitution in subparagraph (i) of paragraph (a) of the expression “paragraph” for the expression “paragraphs (g) and”.