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Analysis:
Analysis
18 Mar 2019
2 minute read

Carbon Tax

Carbon tax effective from 1 June 2019 following Presidential assent

Carbon Tax Placemat 2019
165 KB PDF

The President has signed the Carbon Tax Act into law, which will be effective from 1 June 2019.

Taxpayers are liable for carbon tax should they conduct one of the activities in Schedule 2 of the Carbon Tax Act (Act No. 15 of 2019), above the threshold for that activity. Carbon tax will be levied on the sum of greenhouse gas emissions from fuel combustion, industrial processes, and fugitive emissions, determined in accordance with a reporting methodology approved by the Department of Environmental Affairs.

Emitters will be required to license their activities liable for carbon tax, and payment of this environmental levy will be due in July of each year. A separate tax on emissions from petrol and diesel has been incorporated into the fuel levy system from 5 June 2019.

Very few emitters will not be affected by carbon tax in some way, and now is the time to make sure you have taken the necessary steps to prepare. 

Key contact

Izak Swart

Deloitte - South Africa
Izak is a director in the Global Investment and Innovation Incentives (Gi3) team. Gi3 specialises in securing grants and incentives, such as grants with respect to research and development expenditure and other strategic industry-related government incentives. He has been involved in direct tax for over 15 years, has consulted to a number of large multinationals and has advised clients in various industries.
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