South Africa Reaffirms Commitment to Implement Export Tax on Scrap Metal

SEATTLE (Scrap Monster): The South African Ministry of Economic Development that it considers to extend the Policy Directive on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Metal so that the National Treasury gets more time to implement export tax on scrap metals.

The proposed export duty on ferrous and non-ferrous waste and scrap metals is intended to replace the current Price Preference System (PPS). The PPS, initially introduced in 2013, was renewed in 2018 and again in 2019 until March 31^st, 2020. International Trade Administration Commission of South Africa (ITAC) was directed to advise on the feasibility of replacing the PPS with scrap metal export duty.

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The implementation of export tax would mean that certain metals would be subject to a specific duty based on their average value of exports over a period of time. Furthermore, the tax would be applicable to all countries except those with trade agreement exception, such as the EU member countries, which are exempted from duties under the SADC-EU Economic Partnership Agreement (EPA).

Recently, the South Africa National Treasury had announced its decision to invite public comments on taxes, which will be considered for inclusion in the 2020 draft Taxation Laws Amendment Bill (TLAB).