The South African Revenue Service (Sars) on 26 August announced an amendment of Part 1 of Schedule No 1 to the Customs and Excise Act, 1964 (“Ordinary Customs Duty”) calling for the substitution, insertion and deletion of various tariff subheadings in tariff headings 87.03 and 87.04 to reduce the rate of customs duty on diesel goods vehicles not exceeding 1 100 kg; petrol and electric passenger vehicles not exceeding 800 kg; and electric goods vehicles not exceeding 800 kg, from 25% ad valorem to free of duty.
As a consequence, Part 2B of Schedule No 1 to the Act (“Ad Valorem Excise Duties on locally manufactured goods or on imported goods of the same class or kind”) and Part 2 of Schedule No 6 to the Act (“Refunds and Rebates of Excise Duties, Fuel Levy and Environmental Levy: Rebates and Refunds of Ad Valorem Excise Duties”) are also amended.
The reasoning can be found in the International Trade Administration Commission of South Africa (Itac) Report 519.