On 31 July the South African Revenue Service (SARS) informed of the publication of the 2020 draft Taxation Laws Amendment Bill (TLAB), and the 2020 draft Tax Administration Laws Amendment Bill (TALAB).
The TLAB and TALAB also include the proposed introduction of an export tax on scrap metals (i.e. ferrous metals, aluminium, red metals and other waste and scrap metals) at the rates announced in the 2020 Budget to replace the current price preference system.
The proposed Export Tax rates as recommended by the International Trade Administration Commission of South Africa (ITAC) are shown in the table below. SARS extended an invitation for further comments on the tax, the tax base and the rates for each scrap metal category, which are due by 31 August.
|Scrap metal category||Equivalent specific tax (Rand per tonne)|
|Ferrous metals (including stainless steel)||R1000.00 per tonne|
|Aluminium||R3000.00 per tonne|
|Red Metals||R8426.00 per tonne|
|Other (waste and scrap metals)||R1000.00 per tonne|
Story by: Riaan de Lange