While South African consumers brace themselves for yet another period of fuel price uncertainty, some businesses may be missing out on fuel rebates by not claiming. These rebates are designed to indirectly benefit all consumers as they are targeted at our manufacturing sector from which we all draw benefit, says Gregory Marks, an excise tax specialist and the business transformation and development manager at Turners Shipping.“Rebates on diesel purchases are available for primary manufacturers involved in mining, forestry, commercial fishing, and farming, in addition to other qualifying manufacturing activities. Businesses can claim back a significant amount of the Fuel and Road Accident Fund Levies from their eligible diesel purchases,” he adds. While large companies benefit from the rebates, there are many small and medium enterprises in this sector that do not.“Some may be unaware of the benefits, while others think the claiming process is too complicated and don’t bother. This may change as general input costs increase and margins begin to tighten, or as the increased cost is passed on to the consumer who is already experiencing the crunch.“We spend a lot of time advising clients on the legislative compliance around excise duties in the various manufacturing sectors where there is tax relief.” Referring to this year’s budget speech, Marks, a former senior excise manager at Sars, says that this is the first time he can recall that the tax rates of Excise Duty, Fuel Levy and Road Accident Fund Levy, which make up around 30% of the fuel price, were not increased. “In these uncertain times it could be argued that government could do more to shield the consumer, but we should also acknowledge what government does do and how certain sectors can draw benefit. These benefits will ultimately positively impact on the consumer.“While the qualifying criteria and administration may be onerous, I would urge businesses who qualify to seek help with the claiming process as it has tremendous long-term benefits,” says Marks
