On 03 February 2023, the South African Revenue Service (SARS) called for comment on the proposed amendment of Rule 19A to the Customs and Excise Act, 1964 (Special Provision in respect of Customs and Excise Warehouses in which Excisable or Fuel Levy Goods are Manufactured or Stored) for the implementation of tobacco products related excise duties on nicotine and nicotine-substitute solutions in vaping products, on which comment is due by 24 February 2023.
The proposed amendments include changes to DA forms:
- DA 260 tobacco products (SOS)
- DA 260 tobacco products (VM)
According to SARS, the Government proposed a flat excise duty rate of R2.90/ml for both nicotine and nicotine-substitute solutions in Schedule 1 Part 2A of the Act, 1964 (Specific Excise Duties on Locally Manufactured or on Imported Goods of the Same Class or Kind) which was published in the Taxation Laws Amendment Act, 2022 on 05 January 2023. It is anticipated that the proposed Rule and DA Form amendments relate to the administration of the tax which will be implemented on 01 June 2023.