We're writing to let you know that SARS published a request for comment on the Carbon Tax Environmental Levy forms on 28 January 2021. Comments are due on 18 February 2021.

The request for commentary arises from the amendment of the Carbon Tax Act, which was published on 22 January 2021. Here's a quick summary of the amendment:

  • This amendment includes a change to Section 6(3) of the Carbon Tax Act, 2019.
  • It provides a "pass-through mechanism" whereby petroleum refineries may recover some of their carbon tax cost.
  • This pass-through mechanism essentially applies as a deduction against petroleum refineries' carbon tax liability (in the form of a partial carbon tax cost offset in respect of their total volume of petrol produced during a tax period).
  • Amendments are proposed to the DA180 front page and completion notes of the carbon tax account in the Rules to the Customs and Excise Act, 1964, to give effect to this pass-through mechanism under the carbon tax administration.
  • The rate at which petroleum refineries may recover the carbon tax is 0.56 cents per litre of petrol produced. This is based on 50% of the cost being passed on to the consumer.

Should you have any questions, or require assistance in submitting commentary, please feel free to contact us.

Zelda Burchell, Carbon and Energy Manager
+27 11 568 3341