National treasury has published draft amendments to the Carbon Offset Regulations for comment.
In a statement, treasury indicates that the draft amendments were drafted in terms of section 19(c) of the Carbon Tax Act.
The act came into effect on 1 June 2019 and makes provision for the carbon offset tax-free allowance in terms of Section 13.
“The carbon offset allowance provides flexibility to firms to reduce their carbon tax liability by either 5 or 10 per cent of their total greenhouse gas (GHG) emissions through investments in projects that reduce their emissions outside their taxable activities.”
Some of the draft amendments include making reference to the “certificate of voluntary cancellation” for all projects which is inclusive of cancellation documents from any of the CDM, GS, VCS and national registries; including the definition of “national registries” as well as indicating that certificates derived from cancellation of credits from such registries will be acceptable for listing requirements under the Carbon Offsets Administration System (COAS); updating the definition of “cancellation of carbon credit” to allow for cancellations and provide for transfer from other registries as credits issued exist in either the CDM, Verra, Gold Standard or national registries and including the crediting period of either a ten years fixed or seven years, twice renewable for a total of 21 years for non-AFOLU projects in line with the most recent VCS Standard document.
Comment is invited until 30 April 2021.
Meanwhile, the South African Revenue Service has, in Government Gazette 44383, announced the coming into effect of section 58A of the Customs and Excise Act on anti-forestalling measures in respect of anticipated increases in excise duties.
Section 58A was inserted into the act by the Tax Administration Laws Amendment Act of 2018.