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.
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, international observations on alcohol taxation.
It also covers the potential use of minimum unit pricing in the long term, and other administrative policy considerations in line with the concerns that have been raised by stakeholders.
“With this publication, the National Treasury requests stakeholders to submit detailed written comments and proposals to assist government to further develop an appropriate 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 and announcements will be made in the 2025 Budget,” National Treasury said on Wednesday.
Written comments can be forwarded to 2024Alcoholreview@treasury.gov.za by close of business on 13 December 2024.
Carbon tax
In addition, stakeholders are encouraged to submit detailed written comments on phase two of the carbon tax design.
In the 2024 Budget, 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 in the range of 398 to 510 million tonnes carbon dioxide equivalent (tCO2e) by 2025 and 350 to 420 million tCO2e by 2030, and to reach net zero emissions by 2050.
“The NDCs set out policies and measures to achieve these mitigation goals and adapt to climate change, and the finance requirements to support 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,” National Treasury explained.
The carbon tax discussion paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s NDC commitments.
The discussion document 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 contained in this paper to carbontax@treasury.gov.za.
“After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024,” treasury said.
Tax treatment of collective investment schemes
In addition, National Treasury is also requesting the public to submit written comments on the draft proposals contained in the income tax treatment of amounts received by portfolios of collective investment schemes.
This discussion document stems from a statement in the 2020 Budget Review that indicated that National Treasury would undertake a review on the matter.
“In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts.
“After consultations, government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect role-players.
“This document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962- and puts forward various policy options,” National Treasury said.
Stakeholders are invited to submit written comments on the draft proposals contained in this paper to CIS-Tax@treasury.gov.za.
After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget.
The closing date for comments is close of business on 13 December 2024. -SAnews.gov.za
