Neelam Rahim | neelam@radioislam.co.za

2-minute read
28 April 2023 | 10:06 CAT

Photo credit: BusinessTech

The National Treasury and SARS have called on the public to comment on draft legislative amendments to give effect to the two renewable energy tax incentives announced in the 2023 Budget.

In discussion with Radio Islam International, Rob Hutchinson highlighted vast concerns around renewable energy tax incentives.

According to Hutchinson, governments attempt to incentivize private and business users to use solar panels and alternative energy sources, including wing and hydro, to meet the demands placed on the country by international groups.

South Africa relies heavily on coal, as 95/ of the country’s electricity is generated from coal fire plants. There is a strong move globally to move away from coal and release pressure on the national electricity grid.

Meanwhile, Hutchinson said the enhanced incentive will be available for two years and apply to investments in renewable energy projects brought into use for the first time on or after 1 March 2023 and before 1 March 2025. Individuals will be able to receive a tax rebate of 25% of the cost of any new and unused solar PV panels, up to a maximum of R15,000, available for one year (1 March 2023 to 1 March 2024). Businesses will be able to claim a 125% tax deduction (in the first year) for qualifying capital expenditure in respect of all renewable energy projects, with no threshold on generation capacity.

Listen to the full interview on Radio Islam’s podcast.