Carbon tax and other environmental levies

Elevating your carbon reduction commitments

What is carbon tax?

Carbon tax is an environmental tax on the carbon dioxide (CO²) equivalent of greenhouse gas emissions.
The tax is imposed in terms of the Carbon Tax Act, No. 15 of 2019 and the Customs and Excise, Act No. 91 of 1964.
CO² equivalent means the concentration of carbon dioxide that would cause the same amount of radiative forcing – i.e. rise in temperature - as a given mixture of carbon dioxide and other greenhouse gases.
Emission means the release of greenhouse gases and/or their precursors into the atmosphere, over a specified area and period of time.

Who is liable?

The South African Government’s purpose with carbon tax is to combat climate change by stimulating a low carbon economy.
Carbon tax is imposed on entities in the country who conduct a greenhouse gas-emitting activity above the specified threshold for that activity.

How much is the tax?

As from 1 January 2024, the carbon tax increased from R159 to R190 per tonne of CO² equivalent (a 16% increase).
The specified thresholds are determined in the Carbon Tax Act. However, going forward, the Minister of Forestry, Fisheries and the Environment, in consultation with the Ministers responsible for the greenhouse-gas-emitting sectors and sub-sectors, will set sector-specific thresholds.
Carbon offsets may be traded and used under the Carbon Tax Act to lower the tax payable.

How BDO can help

We can assist with: