DUTY CALLS

Tariff Amendment –
Agricultural Products
On 01 April 2010 there
was an amendment to
Note 3(a) of General Note
IJ in Part 1 of Schedule
No. 1, and Part 1 Schedule
No. 10. The effect of this
amendment is that the
decision on the amendment
of Annexures IV and VI
of the Trade, Development
and Cooperation Agreement
(TDCA) between South
Africa and the European
Community (EC) regarding
certain agricultural
products, is implemented.
Tariff Amendment –
Fuel Levy and RAF
With effect from 07 April
2010 the following tariff
amendments will come into
effect (i) Fuel levy on both
petrol and diesel in Schedule
No.1 Part 5A and 5B will
be increased by 17.5c/
li from 150c/li to 167.5c/
li, and 135c/li to 152.5c/li
respectively; (ii) the Road
Accident Fund (RAF) levy
on both petrol and diesel
by 8c/li from 64c/li to 72c/
li; (iii) the fuel levy for
farming, forestry or mining
on land will be increased to
58c/li fuel levy plus 72c/li
RAF levy on which a refund
of 130c/li may be claimed;
(iv) Fuel levy on offshore
vessels will be increased
to 145c/li plus 72c/li RAF
levy which equals 217c/li;
(v) RAF levy on harbour
vessels and rail will be
increased to 72c/li; and; (vii)
on electricity generation
plants to 145c/li fuel levy
plus 72c/li RAF levy, which
equals 217c/li.
Yet Another Trade
Deficit
According to the trade
statistics for February 2010
which were released by the
South African Revenue
Service (Sars), South Africa
recorded yet another trade
deficit. This resulted in a
trade deficit of R9.079bn,
with February 2010
accounting for R3.389bn.
This figure is half of what it
was for the same period last
year when it was R18.526bn,
and is attributable to a
significant drop in South
Africa’s imports. This could
in part be explained by
the major infrastructural
projects during the time,
which were delivered by
means of imported inputs.
Even though it is half of the
figure that it was last year,
the question still remains,
who is ultimately paying for
the trade deficit? In other
words, how is the trade
deficit being financed?
Another worrying factor
is that South Africa’s trade
profile remains virtually
unchanged.