Changes to diesel tax refunds

Farmers are one of the groups affected by a
review of diesel tax refunds.

NATIONAL Treasury and the South African Revenue Service (SARS) has published its ‘Review of the Diesel Fuel Tax Refund System’ for comment.
This is the first discussion paper by Treasury since 2014, and aims obtain comments from boat operators, mines, farmers and fleet operators on a new, standalone diesel refund by May 15. The current diesel refund system was introduced in 2000 and provides full or partial relief for the fuel levy (FL) and Road Accident Fund (RAF) levy to primary producers in the agriculture, forestry,
fishing and mining sectors.
Introduced in a phased approach, it is aimed at protecting international competitiveness of local industries and reducing the road-related tax burden of the RAF levy for certain non-road users. The discussion document follows on announcements in the 2015 National Budget 2015 to undertake a review of the administration system to address anomalies related to qualifying activities and beneficiaries.
Treasury and the Receiver officials said in a media statement they are committed to explore alternative, more equitable rules and administrative procedures after consulting with the affected industries.
SARS said the implementation of the standalone diesel refund will have to be phased in to ease both the administration burden on beneficiaries and SARS.
Treasury aims to finalise the standalone diesel refund by Decemberafter the public consultations, followed by an announcement of the details in the 2018 National Budget.
• Find more details on www. treasury.gov.za before May 15.