The tax will apply to all sectors including private, public and municipal entities whose thermal capacity is 10mwh and greater. This includes industrial users such as mining operations. It excludes, however, agricultural, waste, forest and other land use sectors. Relevant entities will need to begin the process of monitoring and reporting carbon emissions, with taxes payable through SARS. Companies are required to begin reporting before the 31st of March 2019.
Although the initial tax has been set at R120 per ton of CO2 or CO2e (carbon equivalent), initial tax exemptions aimed at limiting negative economic impacts, mean that taxes could be as little as R6 - R48 per ton of CO2/CO2e.