At a recent seminar on the introduction of the carbon tax, National Treasury confirmed that:

  • the legislative provisions regulating the carbon tax should be introduced in 2015 with the implementation of the carbon tax being in mid-2016
  • a self-assessment process will be used 
  • the administration will likely be under the auspices of the excise arm of SARS but this is still to be confirmed
  • the monies collected from the carbon tax will not be ring-fenced
  • with the introduction of the carbon tax, the current energy/electricity levies will be reduced.

The carbon tax remains contentious, particularly given the uncertainties regarding the implementation and the potential for additional costs of doing business.  Practically, it will be useful to identify any potential incentives that can be used to off-set the carbon tax, which are currently included in the legislation, such as the energy efficiency savings.