Diesel Refunds: The Forgotten Primary Producer
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GUEST – Kagiso Nonyane, senior indirect tax manager at BDO
Government implemented the diesel refund scheme in an attempt to support primary production in certain primary activities such as agriculture, mining, forestry, and fishing. The diesel refund scheme did not extend to secondary activities such as the processing of goods or manufacturing.
Over the past nine years, there have been various discussions between SARS, the National Treasury, and stakeholders from various industries regarding the reform of the diesel refund system.
In 2023, the scheme was extended to manufacturers of food products, with the extension being granted for a limited period, from 1 April 2023 to 31 March 2025.
While all of the above is excellent news, the process of keeping storage and usage logbooks is extremely arduous. Additionally, the time limit for food manufacturers is so short that many producers and manufacturers from all sectors simply aren’t prepared to jump through the multiple administrative requirements needed to effectively make use of the dispensation. This therefore defeats the purpose of extending the scheme.
Government implemented the diesel refund scheme in an attempt to support primary production in certain primary activities such as agriculture, mining, forestry, and fishing. The diesel refund scheme did not extend to secondary activities such as the processing of goods or manufacturing.
Over the past nine years, there have been various discussions between SARS, the National Treasury, and stakeholders from various industries regarding the reform of the diesel refund system.
In 2023, the scheme was extended to manufacturers of food products, with the extension being granted for a limited period, from 1 April 2023 to 31 March 2025.
While all of the above is excellent news, the process of keeping storage and usage logbooks is extremely arduous. Additionally, the time limit for food manufacturers is so short that many producers and manufacturers from all sectors simply aren’t prepared to jump through the multiple administrative requirements needed to effectively make use of the dispensation. This therefore defeats the purpose of extending the scheme.
