Chemical Technology March 2016

CARBON T X

PETROCHEMICALS

The tax-free percentage thresholds will remain fixed during the first phase, until 2020. The percentage tax- free thresholds might be reduced thereafter or may be replaced with absolute emission thresholds. Both the tax-free percentage thresholds and their subsequent replacement with absolute emission thresholds will be aligned with the proposed carbon budgets. From Part 1 of the commentary there were worked examples for Stationary and Non-Stationary/Mobile source emissions. Until the year 2020 there will be allowances made on the carbon tax liability in accordance with the table Schedule 2, beginning on page 22. Example 1 As calculated in Part 1 of this article, annual carbon tax liability for Stationary Source, fossil fuel combustion, will be: 27 069 860 CO 2 e x R120 = R3 248 383 200

There will be a Section 7, 60 % rebate in the first year. A Section 12, Carbon Budget allowance of 5 %. A Section 13, Offset Allowance of 10 % So payment in first year and until 2020, will be 25 % of R3 248 383 200 = R812 095 800 Example 2 As calculated in Part 1, annual carbon tax liability for Non- Stationary/Mobile source will be:

477 7 tCO 2

e x R120 = R57 320

There will be a Section 7, 60 % rebate in the first year. A Section 12, Carbon Budget allowance of 5 %. A Section 13, Offset Allowance of 10 % So payment in first year and until 2020, will be 25 % of R57 320 = R14 330

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Chemical Technology • March 2016