Davis Committee recommends zero carbon tax liability for first year
17 November 2015
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (Moneyweb)
Direct emitters initially only required to comply and report.
The Davis Tax Committee has proposed that the carbon tax be implemented in 2017 as suggested by National Treasury, but recommended that the threshold be set to 100% for the first year.
This would mean that firms that produce direct greenhouse gas emissions from sources that are owned or controlled by them (Scope 1) would be required to comply and submit returns but should not incur a tax liability in the first tax-year after the implementation.
The committee, which has been tasked with a comprehensive review of South Africa’s tax system, on Friday released its first interim report on the carbon tax to the public, almost two weeks after National Treasury published its Draft Carbon Tax Bill for public comment on November 2. The Bill did not propose a 100% threshold during the first year.
According to the committee, its report was submitted to the minister on October 29.
Vinesh Pillay, head of the secretariat for the Davis Tax Committee (DTC), said it was difficult to align the timelines of the two documents but this is not a major problem.
"The Bill is still out for public comment. The DTC report can be taken into account together with comments from the public.”
In e-mailed comments to Moneyweb, National Treasury said the Davis Tax Committee’s process on the carbon tax has had no bearing on the Carbon Tax Bill published.
Please click here to view full article.
This article first appeared on moneyweb.co.za.