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Carbon Tax Act, 2019 (Act No. 15 of 2019)

Regulations

Regulations on the Allowance in respect of trade exposure in respect of carbon tax liability under section 10 of the Carbon Tax Act

3. Determining allowance in respect of trade exposure for purposes of determining carbon tax liability in relation to more than one sector

 

For the purposes of section 10 of the Carbon Tax Act, 2019, where a taxpayer that must receive an allowance in respect of trade exposure is subject to trade exposure in respect of more than one sector, that allowance must be a percentage equal to the sum of the percentages in respect of each sector determined in accordance with the formula:

 

X = S x N

 

in which formula—

(a) "X" represents the percentage to be determined;
(b) "S" represents the percentage of the allowance in respect of the relevant sector, determined in terms of regulation 2; and
(c) "N" represents a number that must be determined in accordance with the formula:

 

 

N = P x Y

S

 

in which formula—

(i) "N" represents the number to be determined;
(ii) "P" represents the number equal to average of the monetary value of the total production, expressed in Rand, of the relevant individual sector for the immediately preceding three tax periods, determined by means of the statistical release published from time to time by Statistics South Africa. "Manufacturing: Production and Sales" or by means of the statistical release published from time to time by Statistics South Africa: "Mining": Production and Sales";
(iii) "S" represents a number equal to the sum of the average of the monetary value of the total production, expressed in Rand, of all the relevant sectors for the immediately preceding three tax periods determined by means of the statistical release published from time to time by Statistics South Africa: "Manufacturing: Production and Sales" or by means of the statistical release published from time to time by Statistics South Africa: "Mining":Production and Sales"; and
(iv) "Y" represents the number 100.