17 February 2017 by Cliffe Dekker Hofmeyr Tax and Exchange Control

Customs and Excise highlights

This week’s selected highlights in the Customs and Excise environment:

  • National Treasury published the Discussion Document on the Review of the Diesel Fuel Tax Refund System for public comment and further consultation. This paper follows on announcements in the 2015 Budget Speech to undertake a review of the diesel refund administration to address anomalies in the system related to qualifying activities and beneficiaries. National Treasury and SARS are exploring alternative, more equitable rules and administrative procedures in consultation with affected industries.

  • The diesel refund system has faced several technical administrative and legal challenges, such as:
    • shared VAT Administration;
    • lack of logbook compliance;
    • authorisation of primary production; and
    • outsourcing of operations.

  • Proposed reforms include:
    • interim Diesel Refund Amendments;
    • qualifying primary production activities rather than users;
    • inclusion of contractors;
    • standalone Diesel Refund Administration System; and
    • linking qualifying activities to physical location.

  • Written comments should be submitted by close of business on 15 May 2017 to:

We remain available to assist herewith. Additional information is available upon request.

(Note: Certain portions of the above content were taken from a recent media statement released by National Treasury)

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