Title page for ETD etd-03062012-113449
Du Toit, Emile Francois Email
Energy efficiency savings allowance in South Africa : an international comparison
New and proposed tax relief sections have been added to the Income Tax Act no 58 of 1962 over the past few years and this is an indication that the South African (SA) Government acknowledges that there is considerable investment required, by both SA taxpayers and the SA Government, to go �green� and to save energy. The National Treasury proposed the introduction of section 12L to the Income Tax Act No 58 of 1962 (the Act) in the 2009 Taxation Laws Amendment Act. This will provide an incentive for taxpayers to benefit from energy savings by incurring capital expenditure with the purpose of reducing energy consumption.
The idea with the proposed section 12L is that the more energy one saves, the less tax one pays. However, the proposed introduction of section 12L has led to uncertainty as to the process to be followed by a taxpayer, in order to qualify for the allowance. There will be a discussion on whether this notional allowance will be in addition to the allowances and deductions based on actual expenditure incurred in the investment of new green technologies.
The objective during the current study is to examine how government should formulate SA legislation in terms of section 12L of the Act to stimulate investment in the conversion of old technologies to new �green� technology. The challenges of improved energy savings will be addressed in the SA context, and compared to similar legislation in China and the United Kingdom (UK). This comparison will identify the gaps, alternatives and possible improvements to the proposed SA section 12L.
AFRIKAANS : Nuwe en voorgestelde wetsartikels vir die vermindering van belasting is gedurende die laaste paar jaar ingedien. Dit is �n aanduiding dat die Suid-Afrikaanse (SA) Regering erken dat aansienlike belegging benodig word om �groen� te raak en om krag te bespaar. Die Nasionale Tesourie het die indiening van artikel 12L in die Inkomste belasting Wet Nr. 58 van 1962 (Die Wet) in die 2009 Belasting Wysigingswet voorgestel. Dit sal as aansporing dien vir belastingbetalers om voordeel te trek uit energiebesparing deur om kapitaaluitgawes wat lei tot die vermindering van kragverbruik aan te gaan. Die id�e agter die voorgestelde artikel 12L is dat hoe meer energie �n mens spaar, hoe minder belasting jy hoef te betaal. Die voorgestelde indiening van wetsartikel 12L lei egter tot onsekerheid oor die proses wat die belatingbetaler moet volg om vir die toelaag te kwalifiseer. Die bespreking sal insluit of hierdie voorgestelde toelaag bykomend sal wees tot die toelae en aftrekkings wat gegrond is op werklike uitgawes wat aangegaan is tydens belegging in die nuwe groen tegnologie.
Die doelwit met hierdie studie is om ondersoek in te stel in hoe die regering die SA wetgewing in terme van artikel 12L van die belastingwet moet formuleer om sodoende belegging in die omskakeling van die ou tegnologie na die nuwe �groen� tegnologie te stimuleer. Die uitdaging van energie besparing sal in die SA konteks aangespreek word en vergelyk word met soortgelyke wetgewing in die Verenigde Koningkryk (VK) en China. Die gapings, alternatiewe en moontlike verbeterings in die voorgestelde wetsartikel 12L sal tydens hierdie vergelyking identifiseer word.
Du Toit, EF 2011, Energy efficiency savings allowance in South Africa : an international comparison, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03062012-113449