|
SOUTH AFRICAN NATIONAL BUDGET 2015
Finance Minister Nhlanhla Nene has tabled the 2015
Budget last week. It was his maiden budget speech
and provides an insight on what one can expect in
future.
There were the expected increases on the so-called
“sin taxes” (specific excise duties) on wines, beer,
spirits and spirituous beverages and tobacco
products. These will be dealt with in more detail
under the heading “Customs Tariff Amendments”.
In addition Fuel and Road Accident Fund (RAF) levies
have been increased by 80,5c per litre with effect
from 1 April 2015. That is 30,5c/litre increase in
the general rate of fuel levy and 50c/litre increase
in the Road Accident Fund (RAF) Levy.
The Minister also introduced several tax measures
aimed at promoting energy efficiency and helping
power utility, Eskom, keep a stable supply.
The environmental levy on electricity will also be
increased from 3,5c/kWh to 5,5c/kWh with effect from
1 April 2015.
The Minister further announced that the
long-expected carbon tax (which will probably be an
environmental levy on carbon dioxide emissions)
would be introduced in 2016. I presume more
information will be provided during the Budget
Speech in 2016.
On a more personal note South African taxpayers will
be paying more taxes on their personal incomes to
help the government raise revenue.
Taxpayers will pay an extra percentage point more
personal income tax to enable the government to
raise an extra R12-billion this year, and another
R15-billion in 2016.
· Download the Treasury's People's
Guide to the Budget [PDF] for more
information.
Read more: http://www.southafrica.info/news/budget-260215.htm#.VPakRfmUdfM#ixzz3TObU4Tkm |
|
|
The International Trade
Administration Commission
(ITAC)
is responsible for tariff investigations,
amendments, and trade remedies in South Africa and
on behalf of SACU.
Tariff investigations
include:
Increases in the customs duty rates in Schedule No.
1 Part 1 of Jacobsens. These applications apply to
all the SACU Countries, and, if amended, thus have
the potential to affect the import duty rates in
Botswana, Lesotho, Namibia, Swaziland and South
Africa.
Reductions in the customs duty
rates in Schedule No. 1 Part 1. These applications
apply to all the SACU Countries, and, if amended,
thus have the potential to affect the import duty
rates in Botswana, Lesotho, Namibia, Swaziland and
South Africa.
Rebates of duty on products,
available in the Southern African Customs Union (SACU),
for use in the manufacture of goods, as published in
Schedule No. 3 Part 1, and in Schedule No. 4 of
Jacobsens. Schedule No. 3 Part 1 and Schedule No. 4,
are identical in all the SACU Countries.
Rebates of duty on inputs used
in the manufacture of goods for export, as published
in Schedule No. 3 Part 2 and in item 470.00. These
provisions apply to all the SACU Countries.
Refunds of duties and
drawbacks of duties as provided for in Schedule No.
5. These provisions are identical in the all the
SACU Countries.
Trade remedies include:
Anti-dumping duties (in Schedule No. 2 Part 1 of
Jacobsens), countervailing duties to counteract
subsidisation in foreign countries (in Schedule No.
2 Part 2), and safeguard duties (Schedule No. 2 Part
3), which are imposed as measures when a surge of
imports is threatening to overwhelm a domestic
producer, in accordance with domestic law and
regulations and consistent with WTO rules.
Dumping is
defined as a situation where imported goods are
being sold at prices lower than in the country of
origin, and also causing financial injury to
domestic producers of such goods. In other words,
there should be a demonstrated causal link between
the dumping and the injury experienced.
To remedy such unfair pricing,
ITAC may, at times, recommend the imposition of
substantial duties on imports or duties that are
equivalent to the dumping margin (or to the margin
of injury, if this margin is lower).
Countervailing
investigations are
conducted to determine whether to impose
countervailing duties to protect a domestic industry
against the unfair trade practice of proven
subsidised imports from foreign competitors that
cause material injury to a domestic producer.
Safeguard measures,
can be introduced to protect a domestic industry
against unforeseen and overwhelming foreign
competition and not necessarily against unfair
trade, like the previous two instruments. |
In the WTO system, a member
may take a safeguard action, which is, restricting
imports temporarily in the face of a sustained
increase in imports that is causing serious injury
to the domestic producer of like products. Safeguard
measures are universally applied to all countries,
unlike anti-dumping and countervailing duties that
are aimed at a specific firm or country.
Schedule No. 2 is identical in
all the SACU Countries.
The International Trade Administration Commission (ITAC)
has published the second amendment applications to
the Southern African Customs Union Tariff for 2015.
The Southern African Customs Union comprises of
South Africa and Botswana, Lesotho, Namibia and
Swaziland.
The Notice (Government Notice R.150 of 2015) was
published in Government Gazette 38478 on 20
February 015.
Comments are due by 20 March 2015.
The application is in relation to amendments to Part
1 of Schedule No. 3.
The application is entitled AMENDMENT OF THE WORDING
FOR QUALIFYING FABRICS UNDER REBATE ITEM 320.01 FOR
THE MANUFACTURE OF UPHOLSTERED FURNITURE.
The amendment of the rebate description is proposed
to read as follows:
320.01/5407.61/01.06 Woven fabrics surface treated
to resemble suede containing 85 % or more by mass of
non-textured micro-fibre polyester filament yarns,
of a mass exceeding 150g/m2 and of a width not
exceeding 150 cm, in such quantities, at such times
and subject to such conditions as the International
Trade Administration Commission may allow by
specific permit, for use in the manufacture of
upholstered furniture classifiable in tariff heading
94.01.320.01/5903.20.90/01.08 Other textile fabrics
commonly known as imitation leather, laminated with
polyurethane, in such quantities, at such times and
subject to such conditions as the International
Trade Administration Commission may allow by
specific permit, for use in the manufacture of
upholstered furniture classifiable in tariff heading
94.01
320.01/5907.00.90/01.08 Textile fabrics commonly
known as imitation leather backed with bonded
leather, in such quantities, at such times and
subject to such conditions as the International
Trade Administration Commission may allow by
specific permit, for use in the manufacture of
upholstered furniture classifiable in tariff heading
94.01.
[Enquiries: Ms. Khosi Mzinjana, Tel: (012) 394
3664. Fax: (012) 934 4664. E-mail: kmzinjana@itac.org.za.
Ms. Amina Varachia, Tel: (012) 394 3732. Fax: (012)
934 4732. E-mail: avarachia@itac.org.za. |
|
|
With the exception of certain
parts of Schedule No. 1, such as Schedule No. 1 Part
2 (excise duties), Schedule No. 1 Part 3
(environmental levies) Schedule No. 1 Part 5 (fuel
and road accident fund levies), the other parts of
the tariff is amended by SARS based on
recommendations made by ITAC resulting from the
investigations relating to Customs Tariff
Applications received by them. The ITAC then
investigates and makes recommendations to the
Minister of Trade and Industry, who requests the
Minister of Finance to amend the Tariff in line with
the ITAC’s recommendations. SARS is responsible for
drafting the notices to amend the tariff, as well as
for arranging for the publication of the notices in
Government Gazettes.
During the annual budget
speech by the Minister of Finance in February, it
was determined that parts of the tariff that are not
amended resulting from ITAC recommendations, must be
amended through proposals that are tabled by the
Minister of Finance.
Once a year big tariff
amendments are published by SARS, which is in line
with the commitments of South Africa and SACU under
international trade agreements.
Under these amendments, which
are either published in November or early in
December, the import duties on goods are reduced
under South Africa’s international trade commitments
under existing trade agreements.
There were a number of tariff
amendments since last week.
The amendments were published in
the following Government Gazettes:
-
Taxation proposals as tabled by the Minister of
Finance in his Budget Review on 25 February 2015
-
Government Gazette 38493 dated 27
February 2015;
-
Government Gazette 38514 dated 27
February 2015.
-
Section A of Part 2 of Schedule No 1 is amended
by increasing the excise duty rates on beer,
wine and other alcoholic products and tobacco
products as tabled by the Minister of Finance in
his Budget Review 2015 at 15h02 on 25 February
2015.
|
-
Section 48 of the Customs and Excise Act, 1964,
Part 1 of Schedule No. 1 is amended (i) By the
insertion of Additional Note 6 in Chapter 22;
and (ii) By the insertion of subheading
2206.00.19.
-
Section 48 of the Customs and Excise Act, 1964,
Part 1 of Schedule No. 1 is amended by
increasing the rate of customs to on sugar of
tariff subheadings 1701.12, 1701.13, 1701.14,
1701.91 and 1701.99 from 142,5c/kg to 207,1c/kg
in terms of the existing variable tariff formula
as recommended in ITAC Minute M08/2014.
-
Section 56 of the Customs and Excise Act, 1964,
Part 1 of Schedule No. 2 is amended by inserting
the following anti-dumping duty items:
- 201.02/0207.14.9/02.07
- 201.02/0207.14.9/03.07
- 201.2/0207.14.9/04.07
- 201.02/0207.14.9/05.07
- 201.02/0207.14.9/06.07
- 201.02/0207.14.9/07.07: and
- 201.02/0207.14.9/08.07
to give effect to ITAC’s final determination on
the (alleged) dumping of frozen bone-in portions
of fowls of the species Gallus Domesticus, originating
in or imported from Germany, the Netherlands and
the United Kingdom. ITAC Report 492 refers.
The tariff amendments will be
sent to subscribers under cover of Supplement 1044
Download the two
latest Customs Watch to have access to the latest
tariff amendments. |
|
