Pretoria: The National Treasury has called on stakeholders to submit detailed written comments and proposals on the policy review of the taxation of alcoholic beverages, carbon tax, and the tax treatment of collective investment schemes.
According to South African Government News Agency, the policy review of the taxation of alcoholic beverages builds on the previous excise tax policy review in 2014 and proposes adjustments to the current policy framework. The discussion document covers developments in the alcoholic beverages industry, including changes in the regulatory landscape, the prevalence of alcohol consumption, illicit trade in alcoholic beverages, and international observations on alcohol taxation. It also explores the potential use of minimum unit pricing in the long term and other administrative policy considerations in line with stakeholders’ concerns.
The National Treasury has requested stakeholders to submit detailed written comments and proposals to assist the government in developing an app
ropriate excise policy framework to reduce the harmful use of alcohol. After the public consultation process is concluded, the draft proposals will be revised to consider public comments, with announcements expected in the 2025 Budget. Written comments can be forwarded to [email protected] by close of business on 13 December 2024.
In addition, stakeholders are encouraged to submit detailed written comments on phase two of the carbon tax design. In the 2024 Budget, the government announced its intention to publish a carbon tax discussion paper for public comment. This paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s Nationally Determined Contributions (NDCs) commitments.
South Africa has made commitments under the Paris Agreement to reduce emissions significantly by 2025 and 2030 and reach net zero emissions by 2050. The NDCs outline policies and measures to achieve these mitigation goals, adapt to climate change
, and finance the transition to a lower carbon climate-resilient economy. Carbon tax is an integral part of the package of policy measures aimed at addressing climate change as recommended in the 2011 National Climate Change Response Policy and the 2012 National Development Plan.
The carbon tax discussion paper includes proposed adjustments to the basic tax-free allowance, carbon offsets, the electricity levy, the renewable energy premium, and the energy efficiency savings tax incentive. Stakeholders are invited to submit written comments on the draft proposals to [email protected]. After the public consultation process, the draft proposals will be revised to incorporate public feedback, with announcements scheduled for the 2025 Budget. The deadline for comments is the close of business on 13 December 2024.
Additionally, the National Treasury is requesting the public to submit comments on the draft proposals regarding the income tax treatment of amounts received by portfolios of collective investmen
t schemes. This discussion document originates from a statement in the 2020 Budget Review, indicating a review on the matter. In 2018, proposed amendments aimed to provide clarity on when these amounts should be treated as revenue instead of capital, impacting their tax treatment. Following consultations, the government withdrew the proposed amendments to allow further engagement with the industry to find solutions that do not negatively affect role-players.
The document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962, and proposes various policy options. Stakeholders are invited to submit written comments on the draft proposals to [email protected]. After the public consultation process, the draft proposals will be revised to consider public comments, with announcements anticipated in the 2025 Budget. The closing date for comments is the close of business on 13 December 2024.