On 20 May the South African Revenue Service (Sars) called for comment on the proposed introduction of export taxes on scrap metal which were announced by the finance minister in the 2020 National Budget.
Given the need to consult all stakeholders, including possible winners and losers, the consultation will take place in two phases. The first phase will be a shorter and broader public comment process on the objective, implementation, functioning and economic and financial impact of such an export tax, including the level of rates and base for such a tax. Comments on the impact on current firms and industries, and the implications for the tax and trade system, will also be welcome, as well as comments on strengthening the administrative capacity of Sars to implement such export taxes.
A more intensive second phase will involve public comment on the proposed legislative provisions to give effect to specific export taxes on scrap metal, to be included in the 2020 draft Taxation Laws Amendment Bill (TLAB). The first phase will commence immediately and run up to the end of April 2020 (sic May 2020), while the second phase will commence with the publication of the Taxation Laws Amendment Bill in mid-July and run up to the end of August/September 2020.
According to the media release, the International Trade Administration Commission of South Africa (Itac) has proposed the following export taxes to apply to scrap metal:
- Ferrous metals (including stainless steel) – R1,000 per tonne
- Aluminium – R3,000 per tonne
- Red Metals – R8,426 per tonne
- Other (waste and scrap metals) – R1,000 per tonne
The media release is accessible at:
