On 07 August the South African Revenue Service (SARS) announced the insertion, with retrospective effect from 01 June 2019, of Notes to Part 3F of Schedule No.1 to the Customs and Excise Act, 1964 “Environmental Levy on Carbon Emissions” as well as the Environmental Levy Items under heading 157.00/9903.00 to give effect to the Budget proposal to implement the carbon emissions tax as announced by the Finance Minister on 20 February 2019. The Schedule was introduced on 07 August.
The insertion of the following Note(s) in Section F to Part 3 of Schedule No.1 to the Act, 1964:
ENVIRONMENTAL LEVY ON CARBON EMMISSIONS NOTES:
1. The rate of environmental levy specified in this Section shall -
(a) be calculated as prescribed in section 5 of the Carbon Tax Act, 2019; and
(b) apply to carbon emissions resulting from activities conducted in the Republic.
2. Any environmental levy payable in terms of this Section in respect of carbon emissions specified therein shall be additional to any customs and excise duty payable in terms of Part 1 or 2 of Schedule No. 1 or any Section in this Part.
3. The amount of environmental levy payable on carbon emissions in terms of this Section shall be calculated as prescribed in section 6 of the Carbon Tax Act, 2019.
4. “Carbon emissions” where used in this Part means carbon emissions as defined in Additional Note 11 to Chapter 99 of Part 1 of Schedule No. 1.
The insertion of the following the Environmental Levy Items, with the Rate of Environmental Levy being “R120/t CO2e emissions”.
157.00/9903.00 Carbon emissions, resulting from:
157.01 9903.00.10 Fuel combustion
157.03 9903.00.30 Fugitive
157.05 9903.00.50 Industrial processes
The Notice is accessible at:
Story by: Riaan de Lange