The rates in the 2020 Draft Taxation Laws Amendment Bill (2020 Draft TLAB) on scrap metal will be changed from a specific Rand rate per tonne to an ad valorem equivalent rate to provide for the dynamic movements in the prices of metals.
National treasury and the South African Revenue Service (SARS) confirmed this during a briefing in parliament on draft responses to public comments received on the 2020 Draft TLAB, 2020 Draft Tax Administration Laws Amendment Bill (2020 Draft TALAB) and the 2020 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2020 Draft Rates Bill).
National treasury called for comment on the draft bills at the end of July 2020 and parliament sought comment at the end of September 2020.
National Treasury and SARS received written comments from 112 contributors on the 2020 Draft Tax Bills by deadline of 31 August 2020.
According to an earlier national treasury statement, the draft tax bills contain tax proposals made in the 2020 Budget on 26 February 2020.
Treasury added that the “implementation of an ad-valorem duty will be monitored and where there is evidence of under-invoicing and/or under-declaration, government will review the manner the export tax is designed as provided for in the amendment to section 48 of the Customs and Excise Act”.
Other changes to be introduced to the draft bills include that the tariff Schedule 6A in the draft 2020 TLAB already provides for stainless steel scrap under tariff subheading item 7204.21 and the applicable rate will be adjusted and is different from ferrous metals; the requirement in the 2020 draft TLAB that bursaries to relatives of employees shall only be exempt if said bursary is an open bursary available to members of the general public will be removed; the requirement that the employer deduction in relation to bursaries is only available if the bursary is not subject to an element of salary sacrifice will be removed; in terms of withdrawing from retirement funds upon emigration, all complete applications received by the SARB before 1 March 2021 will be finalised through the existing process, provided that they are approved by the SARB (even if the approval should occur after 1 March 2021) and the inflationary adjustment for the carbon tax cost pass-through will be included in the draft legislation and the inflation rate will be adjusted as per the Carbon Tax Act (CPI plus 2 percentage points).
Meanwhile, treasury, in a statement, announced that the finance minister, Tito Mboweni, has asked the Speaker of the National Assembly to enable him to table the 2020 Medium Term Budget Policy Statement on Wednesday 28 October 2020.
According to treasury, the “Speaker has acceded to the request subject to the approval of the Parliamentary Programming Committee”.