27 May 2019
Allocations to metros of general fuel levy revenue have been announced.
National treasury listed the allocations in Government Gazette 42474.
They were made in terms of the Taxation Laws Amendment Act.
The act stipulates that the finance minister must, for each financial year, determine an equitable allocation to be made to each metropolitan municipality from the general fuel levy revenue.
Some of the allocations include R547 497 to the Buffalo City Metropolitan Municipality, R 2 570 486 for the City of Cape Town Metropolitan Municipality, R 3 273 169 to the City of Johannesburg Metropolitan Municipality and R 2 610 602 to the eThekwinl Metropolitan Municipality.
Meanwhile, in Notice 693, treasury has announced amendments to Schedule 3 of the Public Finance Management Act.
Changes include listing Financial Sector Conduct Authority and delisting Financial Services Board in Part A.
In a separate matter, the South African Revenue Service has published amendments to Schedules 1, 2 and 4 of the Custom and Excise Act.
Amendments include adjustments to rates of duty on screens, disposable underwear, the removal of Chinese Taipei (Taiwan) from the descriptions of certain notices and rates of duty on seeds, cake wheat flour and bread.
The amendments can be viewed in Gazette 42475.
In a statement, treasury has provided a response to the recent rating action by S&P Global Ratings.
S&P decided to affirm South Africa’s long term foreign currency debt rating at ‘BB’ and local currency debt rating at ‘BB+’ while maintaining the stable outlook. The foreign and local currency credit ratings remain below investment grade.
Treasury emphasized that government’s main focus remains to regain South Africa’s investment-grade status so that the country becomes an attractive investment destination.
“This will be achieved by enhancing policy certainty and credibility, implementing growth-enhancing economic reforms, lowering the debt burden as well as restoring good governance and financial stability at public institutions and State Owned Companies (SOCs), specifically Eskom.”
Treasury has also published a statement on the recently signed Carbon Tax Act.
According to treasury, the act “gives effect to the polluter-pays-principle for large emitters and helps to ensure that firms and consumers take the negative adverse costs (externalities) into account in their future production, consumption and investment decisions. Firms are incentivized towards adopting cleaner technologies over the next decade and beyond”.
During the first phase of the tax, significant tax-free emission allowances ranging from 60 per cent to 95 per cent will be provided.
The impact of the tax will be reviewed before the second phase gets underway, after at least three years of implementation of the tax, and will take into account the progress made to reduce GHG emissions in line with South Africa’s Nationally Determined Contribution commitments.