On 15 May 2026, the South African Revenue Service (Sars) extended an invitation to comment on its propose amendment to Rule 54F of the Customs and Excise Act, 1964 ‘Repeal of the electricity levy’, and to Part 3B of Schedule to the Act, 1964 to provide for the deletion of the electricity generation levy following its repeal; and Part 4 of Schedule No.6 to the Act, 1964 to provide for a refund of the environmental levy paid on electricity generated in South Africa on which comment is due by 29 May 2029.
Explanatory Note
The Taxation Laws Amendment Act, 2026, was promulgated on 01 April 2026 and removed the deduction of the environmental levy on electricity from the carbon tax payable. The removal of the deduction would result in the double taxation of carbon emissions, and therefore Part 3B of Schedule No. 1 and Part 4 of Schedule No. 6 of the Act, 1964, which relate to the imposition and refund of the environmental levy on electricity, would be repealed.
The Proposed Rule Amendment and related documents are accessible at: