|
A BIT OF HISTORY ON EXCISE
Excise duties were first levied in England in 1643 by Charles II to help fund the civil war against Charles I. He however spent most of the excise revenue on himself and gave £500 a month to his mistress.
EXCISE DUTIES AND LEVIES
The basis for the imposition of Excise duties and levies is primarily fiscal by nature, meaning that it is levied to provide the State with an easy collectable and constant stream of revenue. For this reason, the criteria used to select a product suitable for this purpose (excisable product) is basically that it should be fast-moving, high-volume, daily consumables and, in addition to this, mostly non-essential products (e.g. alcohol and tobacco products); hence the popular name Sin Taxes.
A secondary function of these duties and levies is to influence consumer behavior, meaning that Government may manipulate Excise duties and levies to discourage the consumption of certain harmful products; i.e. harmful to human health (tobacco products) as well as harmful to the environment (plastic bags and electricity production from non-renewable sources).
Excise Duties are applicable to the following products consumed in the whole of the Southern African Customs Union (SACU), consisting of the Republic of South Africa, the Republic of Botswana, the Kingdom of Lesotho, the Republic of Namibia and the Kingdom of Swaziland:
- Specific Excise Duty Products
- Fuel/Petroleum Products
- Tobacco Products
- Malt Beer
- Traditional African Beer
- Spirits/Liquor Products
- Wine
- Other Fermented Beverages
- Ad Valorem Excise Duty Products
- Motor Vehicles
- Electronic Equipment
- Perfumeries
- Etc.
- Note:
- Duties on Specific Excise Duty Products are assessed based on the specific quantity/volume/mass of such products
(irrespective of the value thereof); and
- Duties on Ad Valorem Excise Duty Products are assessed based on the value of such products.
Excise Levies are/may be levied separately and uniquely on different products by each individual SACU member state; in the Republic of South Africa currently on the following products:
- Fuel Levy on Petroleum Products
- Road Accident Fund (RAF) Levy on Petroleum Products
- Diamond Export Levy on unpolished Diamonds Exported from the RSA
- Environmental Levies on
- Certain types of plastic carrier and flat bags
- Electricity generated by using non-renewable (fossil; e.g. coal and gas) fuels, as well as by using environmentally hazardous (nuclear) fuels; i.e. creating nuclear waste
- Electric filament lamps (non-energy saving)
- Motor vehicle carbon emission levels (to be implemented soon)
These Duties and Levies are levied in terms of Schedule No. 1 Parts 2, 3 and 5 of the Customs and Excise Act, Act No. 91 of 1964, and generate revenue of approximately 10% of the total national SARS revenue.
|
