On 06 April the South African Revenue Service (SARS) announced the immediate amendment
to Part 3 of Schedule No.6 of the 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 reduction in the general fuel levy, as announced by the Minister of Finance on 31 March. The diesel refund provisions are adjusted accordingly.
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 88,0 cents per litre fuel levy on 80 per cent of eligible purchases, plus 218,0 cents per litre Road Accident Fund levy on 80 per cent of eligible purchases equalling 306,0 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 306,0 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 306,0 cents per litre may be claimed;
OFFSHORE
(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 220,0 cents per litre fuel levy, plus 218,0 cents per litre Road Accident Fund (RAF) levy equalling 438,0 cents per litre.
HARBOUR VESSELS
(iii) Harbour vessels, including - (aa) harbour vessels operated by Portnet; (bb) vessels used by in-port bunker barge operators, 218,0 cents per litre Road Accident Fund (RAF) levy.
RAIL
(iv) Locomotives used for rail freight other than those used in farming, forestry or mining, as provided in these Notes is 218,0 cents per litre Road Accident Fund (RAF) levy.
By the substitution of Note(s) 6(b) with the following;
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 110,0 cents per litre fuel levy, plus 218,0 cents per litre Road Accident Fund (RAF) levy equalling 328,0 cents per litre.
The notice is accessible at: