On 26 March the South African Revenue Service (Sars) announced an increase in the Fuel and Road Accident Fund (RAF) Levy, Part 3 of Schedule No.6 of the Customs and Excise Act, 1964 “Refunds and Rebates of Excise Duties, Fuel Levy and Environmental Levy: Rebates And Refunds Of Fuel Levy And Road Accident Fund Levy”. As a consequence of the increase, as announced by the Minister of Finance in his budget speech of 26 February, the diesel refund provisions are adjusted accordingly. The increase is effective from 01 April.
By the substitution of Note 6(b)(i) in Part 3 of Schedule No. 6 with the following: (i) Farming, forestry or mining on land is, 142,0 cents per litre fuel levy on 80 per cent of eligible purchases, plus 207 cents per litre Road Accident Fund levy on 80 per cent of eligible purchases equalling 349,0 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 349,0 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 1,000 litres less 300 litres equals 700 litres eligible purchases x 80 per cent equals 560 litres on which a refund of 349,0 cents per litre may be claimed.
By the substitution of Note 6(b)(ii) in Part 3 of Schedule No. 6 with the following: (ii) Offshore vessels, including: (aa) commercial fishing vessels; (bb) coasting vessels; (cc) offshore mining; (dd) vessels owned by the National Sea Rescue Institute; (ee) vessels conducting research in support of the marine industry; (ff) coastal patrol vessels; or (gg) vessels employed to service fibre optic telecommunication cables along the coastline of Southern Africa, is 355 cents per litre fuel levy, plus 207 cents per litre Road Accident Fund levy equalling 562 cents per litre.
By the substitution of Note 6(b)(iii) in Part 3 of Schedule No. 6 with the following: (iii) Harbour vessels, including (aa) harbour vessels operated by Portnet; (bb) vessels used by in-port bunker barge operators, 207 cents per litre Road Accident Fund levy.
By the substitution of Note 6(b)(iv) in Part 3 of Schedule No. 6 with the following: (iv) Locomotives used for rail freight other than those used in farming, forestry or mining, as provided in these Notes is 207 cents per litre Road Accident Fund levy.
By the substitution of Note 6(b)(v) in Part 3 of Schedule No. 6 with the following: (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 177,5 cents per litre fuel levy, plus 207 cents per litre Road Accident Fund levy equalling 384,5 cents per litre.
Story by: Riaan de Lange