On 10 June 2022, the South African Revenue Service (SARS) informed that as a consequence to the increase in the rate of the General Fuel Levy, the Diesel Refund Provisions are adjusted accordingly in terms of Part 3 of Schedule No.6 to the Customs and Excise Act 1964 (Refunds and Rebates of Excise Duties, Fuel Levy and Environmental Levy). The tariff amendment is with effect from 06 July 2022 up to and including 02 August 2022.
By the substitution of Note(s) 6(b) with the following;
(b) The extent of refund for eligible purchases -
ON LAND
(i) Farming, forestry or mining on land is, 118.0 cents per litre fuel levy on 80 per cent of eligible purchases, plus 218 cents per litre Road Accident Fund levy on 80 per cent of eligible purchases equalling 336.0 cents per litre on 80 per cent of the total eligible purchases.
Mode of calculation of refund is as follows:
(aa) For 1 000 litres eligible purchases -
1 000 x 80 per cent equals 800 litres on which a refund of 336.0 cent per litre may be claimed;
(bb) For 1 000 litres purchased of which 300 litres represent non-eligible purchases, for example, carriage of goods for reward -
OFFSHORE
1 000 litres less 300 litres equals 700 litres eligible purchases x 80 per cent equals 560 litres on which a refund of 336.0 cents per litre may be claimed;
(ii) Offshore vessels, including -
(aa) commercial fishing vessels;
(bb) coasting vessels;
(cc) offshore mining;
(dd) vessels owned by the National Sea Rescue Institute;
(ff) coastal patrol vessels; or
(gg) vessels employed to service fibre optic telecommunication cables along the coastline of Southern Africa, is 295.0 cents per litre fuel levy, plus 218.0 cents per litre Road Accident Fund Levy equalling 513.0 cents per litre.
HARBOUR VESSELS
(iii) Harbour vessels, including -
(aa) harbour vessels operated by Portnet;
(bb) vessels used by in-port bunker barge operators, 218 cents per litre Road Accident Fund Levy.
RAIL
(iv) Locomotives used for rail freight other than those used in farming, forestry or mining, as provided in these Notes is 218 cents per litre Road Accident Fund Levy.
ELECTRICITY GENERATION PLANTS
(v) Distillate fuel used solely as fuel in electricity generation plants with a capacity exceeding 200 megawatt per plant, generating electricity for the national distribution network, is 147.5 cents per litre Fuel Levy, plus 218 cents per litre Road Accident Fund Levy equalling 365.5 cents per litre.