'First rise in 15 years is more than justified'
WAS THIS a great government revenue rip-off?
So it first appeared when FTW read an item in Safcor's newsletter about an increase in stamp duty on all bills of entry.
Not just an increase - but a massive 150% hike.
Although the increase was small in monetary terms - a rise from 40c to R1 - the percentage translation was far-and-above anything apparently justifiable by a sudden increase in cost, or inflation.
And how many millions of bills of entry did it relate to? Could run to tons of extra boodle for a revenue stamp that holds little physical value.
But our urge for a scoop was rather quickly deflated when we spoke to Peter Krafft, m.d. of Rohlig & Co, and former chairman of SAAFF (SA Association of Freight Forwarders).
Probably round about a couple of million a year, he told us, talking about the number of BoEs.
And the 40c price has now been around for 10-15 years, he added, talking about the justification behind the 150% increase.
It's minimal, and will not affect importers at all.
Indeed, on verifying the exact total of BoEs with Customs director, Gavin Collinet, we were told that 2 524 940 import an export bills passed through the hands of his offices in 1998. And, yes indeed the price rise had been a long time in coming.
As an arithmetic matter, by the way, the stamps will now raise about R2.5-million in gross income each year, compared to about R1-m before the latest price rise.
By Alan Peat
