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.
