What exactly is carbon tax?
The main purpose of the of the carbon tax is to price carbon emissions into business activities through regulation, forcing organisations to be accountable for their environmental footprint. Implementing the carbon tax will ultimately result in the reduction of carbon emissions in the atmosphere and mitigate the adverse effects of climate change.
National Treasury introduced the carbon tax with the objective of South Africa reducing greenhouse gas emissions by 2025 against a business as usual curve. A taxpayer is liable to pay carbon tax where it conducts any activities as set out in Schedule 2 of the Carbon Tax Act and emits GHG emissions above the listed thresholds. There are also tax allowances that range between 60% and are capped at a maximum of 95%. A percentage of emissions will be tax-exempt until 2022 to allow for a smooth transition for business. The national electricity utility is exempt until 1 January 2023 after which it will pass its carbon tax liability through to its consumers in the form of tariff increases.
DID YOU KNOW – Mpumalanga has the 2nd worst air quality in the world?
gREENHOUSE GAS COMPLIANCE
The deadline to submit emissions data for Greenhouse Gas (GHG) compliance reporting is 31 March each year. The Department of Environment, Forestry and Fisheries (DEFF) is still encouraging impacted companies to register. Complying with mandatory reporting is too important to leave to chance: our experts will ensure your business meets all obligations and work with you to identify extra savings and benefits. A one-stop process to gather and analyze your organizations carbon compliance and identify opportunities.
LTM will highlight the potential risk in a proposal of which a potential financial risk can of R5m be levied (or 5 years in prison) as a penalty for non-compliance with legislation and subsequent fines of R10m (or 10 years in prison). The legislation is in full enforcement and DEFF will not hesitate to make strong example of non-compliant companies with full penalty. Here is the link the relevant legislation –