Page 45 - Nexia Cape Town 2018 TG Digital

GREEN TAX

Carbon tax
Cabinet adopted the Carbon Tax Bill in August 2017� Parliament has convened
hearings following the release of the draft bill in December 2017� The bill is
expected to be enacted before the end of 2018� Government proposes to
implement the tax from 1 January 2019 to meet its nationally determined
contributions under the 2015 Paris Agreement of the United Nations Framework
Convention on Climate Change�
Tyre levy
A tyre levy was implemented with effect 1 February 2017 at a rate of R2�30/kg,
through the Customs and Excise Act and collected by SARS� This replaces the
existing environmental fee arrangements per the Department of Environmental
Affairs regulations�
“Environmental” deductions/allowances
■ Section 12B Deduction in respect of certain machinery, plant, implements,
utensils and articles used in farming or production of renewable energy
■ Section 37B Deductions in respect of environmental expenditure
■ Section 37C Deductions in respect of environmental conservation
■ Section 11D Deduction for research and development costs
■ Section 12K Exemption for Certified Emission Reductions
■ Section 12L Special Allowance for Energy Efficiency Savings
■ Section 12U Allowance for renewable energy supporting structures
Tax allowance for energy-efficiency savings
The energy-efficiency savings tax incentive is calculated at a rate of 95c/kWh
and also applies to cogeneration projects� The Regulation stipulates that any
company holding a certificate that can prove their energy savings are genuine,
can submit the certificate to claim an allowance from SARS� The allowance is as
contemplated in Section 12L (2) of the Income Tax Act, 1962�
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