News / National
Government in duty importation u-turn
16 Mar 2017 at 09:54hrs | Views
THE Government has made another importation u-turn by reducing duty on the importation of luxury buses used mainly by cross border transport operators in a move set to promote investment in the transport and logistics sector.
The reversal comes under Statutory Instrument 16 of 2017, which is effective from the 1st of January this year, as a response to a two-year lobby by the Cross-border and Transporters' Association (CBTA).
According to state media reports, under the new order, only importers registered through the CBTA and approved by the Ministries of Transport and Infrastructural Development and Finance and Economic Development, stand to benefit. Duty for such luxury buses is now pegged at five percent down from 40 percent.
A new luxury bus costs between R600 000 and R1 million in South Africa. This means that approved importers would part with around R30 000 (US$2 300) and R50 000 (US$3 800) in import duty rather than R400 000 (US$30 000).
"It is hereby notified that the Minister of Finance and Economic Development (Patrick Chinamasa) has, in terms of Section 235 as read with Section 120 of the Customs and Excise Act (chapter 23:02), made the following regulations.
"1. These regulations may be cited as the Customs and Excise (suspension) (Amendment) Regulations, 2017 (no 16).
"2. The regulations shall be effective from the 1st of January, 2017 to 31st December 2017 and the Customs and Excise regulations of 2003 published in S.I 257 of 2003 are amended by the insertion after the section 9 (x) of the following - Suspension of duty on luxury buses imported by approved importers" reads part of the Statutory Instrument.
The reversal comes under Statutory Instrument 16 of 2017, which is effective from the 1st of January this year, as a response to a two-year lobby by the Cross-border and Transporters' Association (CBTA).
According to state media reports, under the new order, only importers registered through the CBTA and approved by the Ministries of Transport and Infrastructural Development and Finance and Economic Development, stand to benefit. Duty for such luxury buses is now pegged at five percent down from 40 percent.
"It is hereby notified that the Minister of Finance and Economic Development (Patrick Chinamasa) has, in terms of Section 235 as read with Section 120 of the Customs and Excise Act (chapter 23:02), made the following regulations.
"1. These regulations may be cited as the Customs and Excise (suspension) (Amendment) Regulations, 2017 (no 16).
"2. The regulations shall be effective from the 1st of January, 2017 to 31st December 2017 and the Customs and Excise regulations of 2003 published in S.I 257 of 2003 are amended by the insertion after the section 9 (x) of the following - Suspension of duty on luxury buses imported by approved importers" reads part of the Statutory Instrument.
Source - online
