On 28 January the South African Revenue Service (SARS) announced the publication of the draft DA 180: Carbon Tax Account excise form, which proposed changes to the front page and completion notes, on which comment is due by 18 February.
The “Completion Notes” read “NOTES COMPLETION NOTES FOR THE DA 180 ENVIRONMENTAL LEVY ACCOUNT FOR CARBON TAX, DA 180.01A.1 FUEL COMBUSTION (STATIONARY), DA 180.01A.2 FUEL COMBUSTIONS (NONSTATIONARY), DA 180.01B.1 FUGITIVE (OIL AND NATURAL GAS), DA 180.01B.2 FUGITIVE (COAL MINING AND HANDLING), DA 180.01C INDUSTRIAL PROCESS AND DA 180.02 CARBON TAX ALLOWANCES.”
According to SARS’ Explanatory Note, Section 6(3) of the Carbon Tax Act, 2019, provides a pass-through mechanism whereby petroleum refineries may recover some of their carbon tax cost. This pass-through mechanism applies as a deduction against the carbon tax liability of petroleum refineries 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 DA 180 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 draft notices are accessible at:
Story by: Riaan de Lange