DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2022

The memorandum outlines a series of legislative amendments to the South African tax regime. Key proposals include a ramp-up of the carbon tax rate to US$30/tCO2e by 2030, the extension of energy efficiency and electricity price neutrality incentives until 2025, and the introduction of an excise duty on vaping products. It also addresses technical corrections in retirement fund transfers, insurance accounting under IFRS 17, and VAT registration for foreign suppliers.

• The government proposes a phased increase in the carbon tax rate to provide investor certainty and meet National Determined Contribution (NDC) commitments. The rate is proposed to increase by US$1, US$2, and US$3/tCO2e for the 2023, 2024, and 2025 tax periods respectively, reaching US$20/tCO2e in 2026 and at least US$30/tCO2e by 2030.
• To support economic recovery and energy transition, the government proposes extending the first phase of the carbon tax and associated incentives from 1 January 2023 to 31 December 2025. This includes the energy efficiency savings (EES) tax incentive and the electricity price neutrality commitment, which allows electricity generators to deduct renewable electricity purchases from their carbon tax liability.

APA

Centre for Environmental Rights (2022). DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2022. https://cer.org.za/wp-content/uploads/2022/09/Draft_Explanatory_Memoradum_on_the_2022_Draft_TLAB-_29_July_20221-1.pdf?x21779

Chicago

Centre for Environmental Rights. DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2022. 2022. https://cer.org.za/wp-content/uploads/2022/09/Draft_Explanatory_Memoradum_on_the_2022_Draft_TLAB-_29_July_20221-1.pdf?x21779.

Wikipedia

{{cite report |author=Centre for Environmental Rights |title=DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2022 |date=29 July 2022 |url=https://cer.org.za/wp-content/uploads/2022/09/Draft_Explanatory_Memoradum_on_the_2022_Draft_TLAB-_29_July_20221-1.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centreforenvironmentalrights2022draft, author = {{Centre for Environmental Rights}}, title = {{DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2022}}, institution = {Centre for Environmental Rights}, year = {2022}, month = jul, url = {https://cer.org.za/wp-content/uploads/2022/09/Draft_Explanatory_Memoradum_on_the_2022_Draft_TLAB-_29_July_20221-1.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }