On 11 April 2025, the South African Revenue Service (SARS) announced the retrospective amendment to 01 January 2002 by the substitution of Notes 7(b) Part 5A of Schedule No.1 to the Customs and Excise Act 1964 (Fuel Levy), to provide for the newly inserted items included under Item 195.13 as promulgated in the Taxation Laws Amendment Act, 2025 in Government Gazette on 24 December 2024.
By the substitution of Note 7(b) with the following:
(b) For items 195.10.15, 195.10.17; 195.10.21, 195.13.15, 195.13.17, 195.13.21 and 195.20.03, the rate of carbon fuel levy on diesel included in the rate of fuel levy, shall be
(i) {[B x (1 - F)] x (R x 100)} / 1000 x D;
(ii) “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;
(iii) “B” represents the carbon emissions factor per tonne of diesel determined in accordance with the formula prescribed in section 4(2)(a)(iii) of the Carbon Tax Act and using the net calorific value of the Non-Stationary / Mobile Source Category in Table 1 of Schedule 1 of that Act;
(iv) “F” represents the basic tax-free allowance percentage of rebate item 692.01 specified in Part 6 of Schedule No. 6 in respect of IPCC Code 1A3 Transport activities listed in Schedule 2 of the Carbon Tax Act;
(v) “R” represents the rate of environmental levy specified in Section F to Part 3 of Schedule No. 1; and
(vi) “D” represents the density factor of diesel of 0.8255 kilogram per litre.
