Global Tax Alert | 16 January 2017

South Africa delays implementation of Carbon Tax and Carbon Reporting

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The South African Treasury has indicated that the promulgation of the Carbon Tax Bill1 has been delayed due to the busy legislative program of Parliament. As a result, taxpayers are not liable for the much anticipated Carbon Tax from 1 January 2017. Treasury has indicated that they intend to table the Carbon Tax Bill in Parliament soon for implementation later this year with a date to be communicated. However, Treasury has not confirmed whether the current Carbon Tax Bill will be tabled or whether an updated version of the Carbon Tax Bill will first be circulated for public comment and a revised version of the Carbon Tax Bill submitted.

The Department of Environmental Affairs has indicated that the obligation for greenhouse gas (GHG) emitters to report GHG emissions in terms of the Carbon Reporting Regulations has also been delayed beyond 1 January 2017 and the effective date for the reporting requirements is yet to be announced.

We recommend that GHG emitters continue to prepare their systems to produce complete and accurate data for purposes of calculating the Carbon Tax and reporting GHG emissions as it is likely that these measures will be effective later this year or early 2018.


1. For background, see EY Global Tax Alert, South African Government issues draft Carbon Tax Bill for public comment, dates 12 November 2015.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services Ltd., Johannesburg
  • Wendy Gardner
    +27 11 772 3988
  • Neo Penn
    +27 11 772 3358

EYG no. 00202-171Gbl