On 07 August the South African Revenue Service (SARS) announced the insertion, with retrospective effect from 01 June 2019, Part 6 of Schedule No.6 to the Customs and Excise Act, 1964 “Refunds and Rebates of Excise Duties, Fuel Levy and Environmental Levy” by the insertion of notes and various rebate items 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 Part 6 of Schedule No.6 to the Act, 1964:
PART 6 REBATES AND REFUNDS ON CARBON TAX
NOTES:
1. The environmental levy on carbon emissions payable in terms of Section F of Part 3 to Schedule No.1 shall be calculated as prescribed in section 6 of the Carbon Tax Act, 2019.
2. The allowances specified in this Part may be offset on the account from the sum of carbon emissions for the accounting period in which such carbon emissions occurred.
3. “Carbon emissions” where used in this Part mean carbon emissions as defined in Additional Note 11 to Chapter 99 of Part 1 of Schedule No.1.
The insertion of the following rebate items, with the “Extent of Rebate” being “As provided in the Notes
Hereto”, and the “Extent of Refund” being “As provided in the Notes Hereto”:
692.01 00.00 01.00 6 Basic tax-free allowance, subject to compliance with section 7 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.02 00.00 02.00 2 Industrial process emissions allowance, subject to compliance with section 8 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.03 00.00 03.00 9 Fugitive emissions allowance, subject to compliance with section 9 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.04 00.00 04.00 5 Trade exposure allowance, subject to compliance with section 10 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.05 00.00 05.00 1 Performance allowance, subject to compliance with section 11 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.06 00.00 06.00 8 Carbon budget allowance, subject to compliance with section 12 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
692.07 00.00 07.00 4 Offset allowance, subject to compliance with section 13 in Part II and section 14 in Part III of the Carbon Tax Act, 2019
The Notice is accessible at:
https://www.sars.gov.za/AllDocs/Embargo/Tariffs/LSec-CE-TA-2020-043%20-%20Sch6P6%20Carbon%20Tax.pdf
Story by: Riaan de Lange
