South Africa Carbon Tax Bill signed Into Law

On Wednesday 22 May 2019, President Cyril Ramaphosa, signed into law the South African Carbon Tax Bill shortly after having been officially sworn into Office. The Bill was gazetted concurrently with the Customs and Excise Duty Amendment Act, 2019, that provides for the administration and collection of Carbon Tax revenue. The new legislations will come into effect on 1 June 2019. This means that companies within the tax net will have to prepare for compliance as the first tax period runs from 1 June to 31 December 2019.

The Carbon Tax Act, 2019, will set a precedence on the continent with regard to the implementation of measures to stimulate low- carbon development as well as climate resilience. Particularly for South Africa, it shows a willingness to set the country on the path to meeting its Nationally Determined Contributions (NDCs) in the Paris Agreement by curbing South Africa’s GHG emissions towards the peak, plateau and decline trajectory.

Mr. Lodewijk Nell, partner at EcoMetrix Africa, indicates that even though the Bill has been in the pipeline for 10 years, a lot of companies are not ready to implement this new legislation. He further points out that the Act provides for administrative, financial and operational opportunities that can assist with reducing one’s tax exposure.

Click the links to download the Carbon Tax Act, 2019, and the Customs and Excise Amendment Act, 2019