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Payment of Excise Duty on Tobacco Products Deferred

June 17, 2020

South African Revenue Service

The payment of excise duty on tobacco products, beer and wine can be deferred for 90 days.

The South African Revenue Service (SARS) published amendments to Customs and Excise Act Rules in Government Gazette 43435.

Rule 19A. 11 is inserted dealing with special provisions in respect of payment of excise duty on certain goods during the period commencing 1 May 2020 and ending on 30 June 2020.

SARS point out, however, that applicable excise duty accounts must still be submitted on the dates prescribed.

Rule 54FD.04 and rule 54FD.05 have also been amended. The amendments focus on the deferral of first carbon tax submissions and payments.

The period for the submission of documents and payment now commences on 1 October 2020 and documents and payment must be submitted not later than the penultimate working day of that month.

Subsequently, submission and payment will take place in July each year.

Rules 105.01 to 105.04 concerning instalment payment are also inserted.

The amendments focus on instalment payment agreements, qualifying criteria for payment of debt in instalments, applications for instalment payment agreements and limitation of period for applications for instalment payment agreement in respect of deferment accounts.

“Applications for instalment payment agreement in respect of amounts outstanding on deferment accounts may only be submitted until 31 August 2020.”

The amendments came into effect on the date of publication except for rule 19A.11 which kicked in on 1 May 2020.

Meanwhile, national treasury, in Gazette 43418, has called for nominations of candidates for appointment on the Board of Directors of the Land Bank.

The appointments are made in terms of the Land and Agricultural Development Bank Act.

Nominations are invited until 26 June 2020.