What exactly is carbon tax?
The main purpose 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 purpose of reporting Greenhouse gas emissions to the Department of Environment, Forestry and Fisheries (DEFF) is to maintain a national inventory of emissions for reporting to the United Nations Framework Convention on Climate Change (UNFCCC) and informing future policies. Registration on the South African Greenhouse Gas Emissions Reporting System (SAGERS) began in 2018 and organisations are required by law to be complete their mandatory emissions reporting on the system by 31 March every year. The Department of Environment, Forestry and Fisheries (DEFF) is still encouraging impacted organisations to register and report their emissions. Complying with these mandatory reporting requirements is too important to leave to chance, so let our experts ensure your business meets all obligations and work with you to identify extra savings and benefits. The legislation is in full enforcement and DEFF will not hesitate to make strong example of non-compliant organisations with full penalty of R5m or 5 years imprisonment.
Here is the link the relevant legislation –