South Africa: Budget for 2013–14 – indirect taxes

March 7, 2013

The Budget for 2013–14 was presented to Parliament by the minister of finance on 27 February 2013.

Details of the Budget on indirect taxes, which, unless otherwise indicated, will apply from 1 April 2013, are summarized below.

VAT

Proposal to introduce a requirement for foreign businesses supplying e-books, music and other electronic services in South Africa to register as VAT vendors.

Excise duties

Proposal to:

  • Increase excise duties on alcohol and tobacco products by between 5.7% and 10%
  • Increase the fuel levy by 23 cents per liter, which will include 8 cents per liter in the road accident fund levy

Customs duties

No changes have been announced.

Carbon tax

The minister has proposed to introduce a carbon tax at the rate of ZAR120 per ton of carbon dioxide (CO2) equivalent, with effect from 1 January 2015.

An exemption threshold of 60% and allowances for emissions-intensive and trade-exposed industries will apply.

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