A Guide To Carbon Tax

The economy is also very carbon-intense and on par with the economies of industrialised countries such as Japan, the United States and China. The global trend towards future carbon constraint means that economies that avoid taking mitigation action will become increasingly uncompetitive. South Africa has recently introduced a carbon tax and, by its imposition, becomes the first African jurisdiction (and one of only very few developing countries) to introduce a domestic price on carbon emissions.

Submission of carbon tax returns and payment of carbon tax will become an annual event. However the 2020 filing poses particular hurdles due to the fact that the South African Revenue Service has continued to publish guidance and support material, essential for a proper completion of a carbon tax return, until as recently as 21 September 2020.

“Framing effective and efficient responses to the new carbon tax legal regime demands intimate knowledge of the complex interaction of three statutes, five sets of regulations, numerous rules and myriad calculation and reporting obligations – which are governed and administered according to the dictates of three different government departments,” says Andrew Gilder, co-author of the Concise Guide to Carbon Tax. “It is understandable that carbon taxpayers are asking for assistance, and the Concise Guide is precisely the help that taxpayers have been seeking.”

By assembling and explaining the entire suite of relevant documentation, legal instruments, forms and practical processes, the guide, published by LexisNexis South Africa, provides a single point of reference for the entire carbon tax legal regime, and equips taxpayers to manage their carbon tax compliance and payment obligations.

Authored by seasoned climate change, carbon market, carbon tax and tax law practitioners Gilder and  Olivia Rumble (both directors at Climate Legal) and Mansoor Parker (tax executive at ENSafrica), the guide is set to become a standard practitioners’ reference in the emerging field of carbon tax in South Africa.