Preliminary Revenue Results 2008/2009 On the afternoon of 01 April 2009 the Minister of Finance announced the preliminary revenue results for the fiscal year 2008/2009. In the fiscal year 2007/08 customs duty accounted for R23.772 billion. In the fiscal year 2008/2009 however, an amount of R22.80bn was collected. As for excise duties (specific excise) an amount of R19.63bn was collected in the fiscal year 2008/2009, which is down from a February 2008 estimate of R20.40bn. If one looks at the revenue result in general, the South African Revenue Service (Sars) collected an amount of R625.57 billion by midnight 31 March 2009. The preliminary result is 0.34% below the revised February 2009 Budget estimate of R627.69 billion. This represents a 9.2% growth in revenue collection over 2008. According to the Minister, in anticipation of the economic downturn, the revenue target was adjusted downwards in February from R642.27 billion to R627.69 billion. The Minister also explained that the current conditions had resulted in the collection of R625.57 billion or 99.66% of the target. The Minister said that the Import Value-added Tax (VAT) and customs duty contributed to the shortfall as a result of falling trade volumes, especially during the last quarter of the fiscal year. Apparently a key factor was a 10% decline in automotive goods and parts, which make up 19% of monthly imports. The Minister also mentioned that customs deferments collected amounted to R4.2 billion. Tariff Amendment – 03 April 2009 Minibus Taxis A notice was published in the Government Gazette of 03 April 2009 in respect of the amendment of Schedule No.1 Part 2B of the Customs and Excise Act (Ad Valorem Excise Duties, and Ad valorem Customs Duties on Imported Goods of the Same Class of Kind) that amends the description of the item to exclude 14-seat minibus taxis from the payment of ad valorem duties. The amendment of Item 126.02/87.02 is published with retrospective effect from 01 April 2006. Draft VAT Interpretation Note – Comment Sars has extended an invitation to all interested parties to comment on Draft Interpretation Note: No.31 (Issue 2) titled Documentary proof required to substantiate a vendor’s entitlement to apply the zero rate to the supply of goods or services in terms of section 11(3). Comment is due by 01 June 2009. Application for the Rebate of the Duty A notice has been published in the Government Gazette to replace an earlier notice of 24 December 2009. The notice was in respect of the rebate of the full customs duty (duty) on electric heating resistors for the manufacture of solid-plate stoves, solid-plate hobs and solid-plate tabletop cooker. The application was lodged by Defy Appliances (Pty) Ltd, who stated, as reason for the application, that there were no Southern African Customs Union (Sacu) manufacturers of electric heating resistors and solid plates which currently carry an ad valorem duty of 20%, and are used in the manufacture of domestic stoves, hobs and tabletop cookers. Comment is now due by 17 April 2009. Draft Rule Amendment – Comment Due Sars has published a Draft Rule Amendment in respect of its proposed Draft State Warehouse Rules. Comment is due by no later than 04 May 2009. If you are interested in learning more about any of the articles in this week’s column, please send an email with the headline of the article in the title.
