Chemical Technology March 2016

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PETROCHEMICALS
Chemical Technology • March 2016 21
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 CO2e 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 tCO2e 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
CARBON T X