On 06 April 2023, the South African Revenue Service (SARS) announced the imposition, with effect from 01 June 2023, of an excise rate of duty of R2.90/ml on nicotine and nicotine-substitute solutions in Part 2A of Schedule No.1 to the Customs and Excise Act, 1964, “Specific Excise Duties on Locally Manufactured or on Imported Goods of the Same Class or Kind”. The amendment is a result of its publication in the Taxation Laws Amendment Act, 2022 on 05 January 2023.
By the deletion of Tariff Items:
- 104.37.15/2404.19.20 - Other, put up for retail sale in the form of sticks
- [Rate of excise duty- R7.80/10sticks]
- 104.37.17/2404.19.90 – Other
- [Rate of excise duty is R975.15/kg]
By the insertion of Tariff Items:
- 104.37.14/2404.12 Other, containing nicotine
- [Rate of excise duty - R2.90/ml]
- 104.37.16/2404.19.10 Containing nicotine substitutes
- [Rate of excise duty - R2.90/ml]
- 104.37.19/2404.19.20 Other, put up for retail sale in the form of sticks
- [Rate of excise duty - R7.43/10 sticks]
- 104.37.21/2404.19.90 Other
- [Rate of excise duty - R929.33/k]
By the insertion of the following rebate items:
- 622.08/104.37.14/05.01 Other, containing nicotine
- [Extent of Rebate - Full duty]
- 622.08/104.37.16/06.01 Containing nicotine substitutes
- [Extent of Rebate - Full duty]
- 622.08/104.37.19/07.01 Other, put up for retail sale in the form of sticks
- [Extent of Rebate - Full duty]
- 622.08/104.37.21/08.01 Other
- [Extent of Rebate - Full duty]
- 622.13/104.37.14/05.01 Other, containing nicotine
- [Extent of Rebate - Full[ duty]
- 622.13/104.37.16/06.01 Containing nicotine substitutes
- [Extent of Rebate - Full duty]
- 622.13/104.37.19/07.01 Other, put up for retail sale in the form of sticks
- [Extent of Rebate - Full duty]
- 622.13/104.37.21/08.01 Other
- [Extent of Rebate - Full duty]
- 622.23/104.37.14/05.01 Other, containing nicotine
- [Extent of Refund - As provided in Note 4 to this Section]
- 622.23/104.37.16/06.01 Containing nicotine substitutes
- [Extent of Refund - As provided in Note 4 to this Section]
- 622.23/104.37.19/07.01 Other, put up for retail sale in the form of sticks
- [Extent of Refund - As provided in Note 4 to this Section]
- 622.23/104.37.21/08.01 Other
- [Extent of Refund - As provided in Note 4 to this Section]