On 25 February 2026, the Finance Minister delivered his National Budget 2026 speech, in which he addressed the following amendments to the Customs and Excise Act, 1964:
Providing enabling provisions relating to ATA Carnets
The Admission Temporaire/Temporary Admission (ATA) Carnet system, established under the ATA and Istanbul Conventions, enables the Temporary Admission (TA) of certain goods, such as commercial samples, professional equipment, and exhibition items, into foreign territories without the payment of duties or taxes. Carnets were historically issued in paper form by the National Guaranteeing Associations (NGAs) and processed manually at border posts.
The World Customs Organization (WCO) and the International Chamber of Commerce (ICC) have launched an electronic ATA Carnet Project, which mandates fully digitised carnets. To ensure that South Africa can implement the new requirements of the international agreement, an amendment to the Customs and Excise Act, 1964, is proposed to enable the South African Revenue Service (SARS) Commissioner to issue rules governing the issuance, use, and submission of international Carnets for goods temporarily imported or exported.
Amendments to facilitate the administration of carbon tax refunds
The insertion of Section 17A in the Carbon Tax Act, 2025, provides for a refund where an entity complies with carbon budgets over a five-year period. Carbon Tax refunds are administered in terms of the Customs and Excise Act, 1964 and a two-year prescription period applies for customs and excise refund claims. It is therefore proposed that the Act of 1964 be amended to facilitate the administration of Carbon Tax refunds claimed over a longer period.
Discretion to exempt non-compliance in relation to rebates in Schedules No.3, 4 and 6 Section 75(10) of the Customs and Excise Act, 1964 gives the Commissioner broad discretion to exempt or condone non-compliance by taxpayers who fail to meet conditions or requirements prescribed by rule or in the notes to Schedules No.3, 4 and 6 of the Act, 1964 in respect of any goods specified in an item of these Schedules. The modern legislative approach is to move away from broad discretion and to provide criteria for its exercise, enhancing clarity and certainty. It is proposed that the discretion be redrafted accordingly.
Separating the carbon fuel levy from the general fuel levy
When the Carbon Fuel Levy was introduced under the Carbon Tax Act, 2025, SARS systems were not designed to facilitate separate payment of these levies. As a result, the Carbon Fuel Levy applicable to petrol and diesel was included as part of the General Fuel Levy provided for in Part 5A of Schedule No.1 to the Customs and Excise Act, 1964. Since the implementation of the Carbon Fuel Levy, new tariff items attracting this levy have been introduced by the Taxation Laws Amendment Act, 2024. Systems changes were required to accommodate the integration of these new tariff items, and the Carbon Fuel Levy can now be separated from the General Fuel Levy. It is proposed that a new Part 5C be inserted into Schedule No. 1 of the Customs and Excise Act, 1964, to provide separately for the administration of the Carbon Fuel Levy.
Amendments in relation to electronic heated tobacco products
Taxing electronic heated tobacco products based on tobacco content (weight) rather than by stick (quantity) is considered a more effective public health strategy because it reduces the industry’s ability to control the tax base and encourages healthier consumer choices. It is proposed that the statistical unit of measure “per 10 sticks” be changed to “per kilogram net” for electronic heated tobacco products.