South Africa: Customs provisions in 2017 budget

South Africa: Customs provisions in 2017 budget

The budget for 2017 was presented on 22 February 2017 in South Africa. Among the customs-related items in the budget are the following measures:

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Update on customs legislation: More delays can be expected in the implementation of the proposed Customs Control Act (2014) and the Customs Duty Act (2014) due to amendments being considered resulting from further comments received from external stakeholders during public consultations.

Specific customs and excise duties: Effective from 22 February 2017, specific customs and excise duties are increased. On most alcoholic beverages, the duty rate increased by between 6.1% and 9.5% (excluding traditional African beer and beer powder that remains unchanged). The rate of duty on tobacco products and cigars increased by between 8% and 9.5%.

Other customs and excise proposals: 

  • Possible amendment of legal authorisation for sharing trade statistics with organs of state to be reviewed for its appropriateness
  • Amendments will be considered for the provisions in the Tax Administration Laws Amendment Act (2016) for the marking, tracking and tracing of locally manufactured and imported tobacco products to account for further implementation requirements
  • The 2015 Budget announced a comprehensive review of the administration of the diesel refund, which requires the de-linking of the diesel refund from the value added tax (VAT) system and the creation of a standalone diesel refund administration. A discussion paper outlining the options for a simplified administration system was published for public comment on 15 February 2017. The legislative amendments to give effect to the separation of the diesel refund system are to be developed following public consultations.
  • The government proposes to implement tax on sugary beverages, to be administered through the Customs and Excise Act (1964), with a proposed rate 2.1c/gram for sugar content in excess of 4g/100ml, of which 50% will apply to concentrated beverages.

 

Read a February 2017 report [PDF 443 KB] prepared by the KPMG member firm in South Africa

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