On 01 April 2021, the South African Revenue Service (SARS) announced that as a consequence of the increase in the fuel and Road Accident Fund (RAF) Levy, in Part 3 of Schedule No.6 to the Customs and Excise Act, 1964, as announced by the Minister of Finance in his National Budget speech of 24 February 2021 the diesel refund provisions are adjusted accordingly, with effect from 07 April 2021.
The tariff amendments relate to 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, 148,0 cents per litre fuel levy on 80 per cent of eligible purchases, plus 218 cents per litre Road Accident Fund levy on 80 per cent of eligible purchases equalling 366,0 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 366,0 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 366,0 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 370 cents per litre fuel levy, plus 218 cents per litre Road Accident Fund levy equalling 588 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 cents per litre Road Accident Fund levy.
RAIL
(iv) Locomotives used for rail freight other than those used in farming, forestry or mining, as provided in these Notes is 218 cents per litre Road Accident Fund levy.
The tariff amendments relate to 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 185 cents per litre fuel levy, plus 218 cents per litre Road Accident Fund levy equalling 403 cents per litre.
The tariff amendment is available on request.
Story by: Riaan de Lange