Sin taxes up - again

daveza

daveza

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Beer drinkers will pay seven cents more for a 340ml can.

A bottle of wine will cost 15 cents more, while the price of ciders and alcoholic fruit beverages is set to rise seven cents a litre.

A 750ml bottle of spirits will cost R3.60 more from April 1.

Those who prefer traditional African beer will, however, not be digging deeper into their pockets.
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We don't want to upset the voters....
 
So there is a market for it, a demand for it and a consumption of it but it is not registered ?

Sounds much like weed to me.
 
I make my own beer but I need to start distilling whiskey and brandy as well.
 
Interesting to hear Pravin bow down to Brandhouse's request to stop calling it 'sin tax'...
 
daveza said:
And now we are going to pay vat for online music/movie purchases from outside SA as well.
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I must have missed that. How on earth can they force businesses based outside of SA to charge VAT (quite simply, they can't), and how do they plan to collect it? In fact it is illegal for a company outside of SA to charge VAT, as there is no recovery method, so this makes absolutely no sense.

I think someone has got their wires crossed here...
 
daveza said:
And now we are going to pay vat for online music/movie purchases from outside SA as well.
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Ja, I saw that as well... looking for a link for it... or just gonna download the whole speech and find it.
 
http://www.sowetanlive.co.za/news/2013/02/27/budget-speech-sin-taxes-fuel-levies-up

Those purchasing e-books or downloading music will also be affected.

The SA Revenue Service will require all foreign businesses supplying these services in South Africa to register as VAT vendors.

"In the case of imported services or digital supplies, such as e-books or music, no border post or post office can perform the function as collecting agent, as is the case with physical goods," according to the 2013 Budget Review.

The document says this means consumers are buying services on websites without paying VAT.

Treasury says the new proposals will bring South Africa in line with international trends. It cites regulations adopted by the European Union, which state that those supplying digital goods must register for VAT in the country where consumers reside.
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http://www.sanews.gov.za/south-africa/2013-budget-speech

he Budget Review outlines various measures proposed to protect the tax base and limit the scope for tax leakage and avoidance. The taxation of trusts will come under review to control abuse; modifications are proposed to the tax treatment of employment share schemes and disability or income-protection policies; outstanding difficulties in the distinction between debt and equity will be addressed; and it is proposed that foreign businesses which sell e-books, music and other digital goods and services should be required to register as VAT vendors, in line with regulations which have been adopted by the European Union and other jurisdictions.
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The document says this means consumers are buying services on websites without paying VAT.
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Because the government had no involvement in adding any value at any point in time during the production or sales cycle of the product, whatsoever.

In the case of imported services or digital supplies, such as e-books or music, no border post or post office can perform the function as collecting agent, as is the case with physical goods,"
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Yes, and? You had no input and added no value. Why do you deserve an income from this?

This move is ridiculous...
 
Beachless said:
So I guess we will be seeing more of those "Your country is not supported messages" ?
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Absolutely. Cue fewer locally quoted prices and more USD, GBP, EUR quotes.

They immediately appear to be 14% more expensive than their competitors quoting in ZAR and then they have an administrative burden on transferring of VAT payments. How on earth are they managing currency fluctuations here? Each company will need a treasury function that marks to market at close of business for every item, specifically for SA. Very, very few companies are going to go through the headache and cost of taking forward cover on future potential transactions, simply to cover the VAT portion of their SA sales.

Wow, what a load of schit...
 
DJ... said:
Absolutely. Cue fewer locally quoted prices and more USD, GBP, EUR quotes.

Wow, what a load of schit...
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Government really think that we are some awesome country that everyone has no choice but to do business with.

We are a 3rd world "emerging" market so start making it easy for business.

"emerging" in quotes because I dont think we should fall in that category anymore.
 
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