During the annual Budget Speech, held on 22 February 2017, Pravin Gordhan announced that a revised Carbon Tax Bill will be published for public consultation and tabled in Parliament later in 2017. This suggests that carbon tax may come into play in early-2018.
Carbon Tax will be administered as an environmental levy by SARS. It is important to keep in mind those businesses which have identified themselves as ‘not-liable’ for carbon tax during the first phase, will still be required to submit environmental levy accounts regardless of whether any net Carbon Tax payment is due.
The National Treasury said there would be no impact on the price of electricity during the first phase of the tax, which extends until 2020. Furthermore, a revised regulation for the carbon offset allowance, enabling firms to reduce their carbon tax liability, will be published by mid-2017. It is expected that Government will provide clarity on the alignment of the carbon tax and carbon budget after 2020.
If you have any questions on the carbon tax and what it could mean for your business, please do not hesitate to contact Jess: firstname.lastname@example.org