The Carbon Tax Act (Act No. 15 of 2019) was promulgated on 1 June 2019. Entities that engage in activities that produce direct GHG emissions will be liable. In Phase 1 (2019 – 2022), entities with total installed thermal capacity that is equal to or above 10MW shall report their emissions and will be subject to the tax. Over time, this threshold will be reduced. Firms should be aware of the current and future reporting requirements, and be able to mitigate associated tax implications ahead of future threshold revisions.

On the  8th of  August the KwaZulu-Natal Clothing and Textile Cluster hosted a Carbon Tax Support Programme where expert speakers and ongoing activities addresse the following topics:

• Understand if your facility falls within the Phase 1 threshold
• Steps required to report Greenhouse Gas emissions (2017 Regulations)
• The Carbon Tax compliance process
• Practical steps to reducing factory carbon footprints and associated costs
• Complementary Cluster Carbon Benchmarking available to all members
• Helpdesk support for Cluster members

Firms of all sizes were encouraged to attend, since preparation for and mitigation of Carbon Tax, now or in the future, will promote financial sustainability, as well as a reduced carbon footprint which is becoming increasingly important in both local and international markets.

Those who attended:

• S.H.E. Managers
• Operations/Production Managers
• Compliance/Finance/Tax teams
• Managing Directors
• Business Owners
• Factory Managers

The agenda covered: