R10 Million Carbon Tax Savings for Sugar Industry

An estimated R10 million in annual Carbon Tax savings for the sugar industry is the result of a recent collaboration between the South African Sugar Association (SASA) and EcoMetrix Africa.

Under the previous Draft Carbon Tax Trade Exposure Allowance Regulations, the sugar industry had only been granted a trade exposure allowance of 7.59%. SASA, utilising the carbon tax expertise of EcoMetrix Africa, made a submission to National Treasury to increase the trade exposure allowance for the sugar sector from 7.59% to 10%. SASA also requested a separate and more appropriate SIC code for the manufacture of sugar, golden syrup and castor sugar.

These submissions were accepted by National Treasury and published in the Final Carbon Tax Trade Exposure Allowance Regulations, which were gazetted on 19 June 2020. The trade exposure allowance for the sugar sector is now 10%, and SIC code 3042 has been included in the list of codes and allowances for the ‘manufacture of sugar, including golden syrup and castor sugar’.

According to EcoMetrix Africa, the increase of the allowance by 2.41%-point to 10% could save the sugar industry more than R10 million in carbon taxes annually.

Click here to view the Final Carbon Tax Trade Exposure Allowance Regulations gazetted on 19 June 2020.