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Carbon Tax Act Signed

May 23, 2019

The Presidency

23 May 2019

A raft of finance-related acts has been assented to by president Ramaphosa.

Acts include the Carbon Tax Act, Customs and Excise Amendment Act, Financial Matters Amendment Act and the Public Audit Excess Fee Act.

Carbon Tax Act

The Carbon Tax Bill was tabled in parliament in November 2018 and passed by parliament in March 2019.

The Carbon Tax Act, published in Government Gazette 42483 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 act comes into effect on 1 June 2019.

Customs and Excise Amendment Act

The Customs and Excise Amendment Bill was tabled in parliament at the beginning of February 2019 and passed by parliament in March 2019.

The Customs and Excise Amendment Act, published in Gazette 42480, aims to amend the Customs and Excise Act of 1964 so as to:

• make provision for the administration and collection of carbon tax revenues; and
• provide for matters connected therewith.

The bill’s explanatory summary had referred to the intention to insert a new provision for the purpose of the administration of allowances and limitation of allowances in relation to the Carbon Tax Bill; require that a taxpayer as defined in the Carbon Tax Bill license premises as may be prescribed by rule; regulate actions pertaining to submission and verification of accounts, collection and payment of the carbon tax and allow the Commissioner to make rules insofar as it is necessary to regulate duties, powers and rights not regulated by the Carbon Tax Bill in relation to collection and payment of the carbon tax.

The act comes into effect on 1 June 2019.

Financial Matters Amendment Act.

The Financial Matters Amendment Bill was tabled in parliament at the end of January 2019 and passed by parliament in March 2019.

Acts to be amended include the Insolvency Act, Military Pensions Act and Banks Act.

The Financial Matters Amendment Act, published in Gazette 42482, aims to amend:


• the Insolvency Act, 1936, so as to provide for a process when a creditor realizes his or her security in terms of a master agreement and for a power for the Master to deal with disputes raised by the trustee and other creditors regarding preference of that secured creditor;
• the Military Pensions Act, 1976, so as to provide for all categories of spouses and for life partners of members by amending, inserting and deleting certain definitions; and by providing for both genders throughout the Act and regulating the registration of a spouse to qualify for benefits upon the death of a member;
• the Banks Act, 1990, so as to regard national state-owned companies as public companies for purposes of the application of the Banks Act; to determine prerequisites for these companies and their holding companies to qualify to apply for establishment as a bank; and to provide for inconsistencies between the Banks Act and certain other legislation with respect to state-owned companies; and
• the Government Employees Pension Law, 1996, so as to replace the divorce debt approach with a pensionable service reduction approach to adjust the benefit of a member of the Government Employees Pension Fund following a pension interest assigned to a former spouse of the member as result of a decree of divorce or for the dissolution of a customary marriage; and to provide for a transitional measure.

The act is now in effect.

Public Audit Excess Fee Act

The Public Audit Excess Fee Bill was tabled in parliament on 2019 Budget day and passed by parliament at the end of March 2019.

The Public Audit Excess Fee Act, published in Gazette 42481, seeks to:


• provide that the specified excess of the audit fee of certain categories of organs of state, payable to the Auditor-General, as envisaged in the Public Audit Act, 2004, is, if the stated conditions are complied with, a direct charge against the National Revenue Fund; and
• provide for matters connected therewith.

According to a cabinet statement in November 2018, the bill proposed that audit fees in excess of 1% of expenditure of municipalities and certain other public institutions payable to the Auditor-General, be treated as a direct charge against the National Revenue Fund.

The act will come into effect on a date still to be determined by the finance minister.