• BUSINESS
would result in legislative amendments to reflect recent industry developments , as well as the provision of clear and comprehensive guidance .
Currently there are no indications that the diesel refund scheme will be considered as part of the technical Annexure C tax proposals for the 2025 budget . 5 Poor rail and port performance , strikes , illegal mining , and crime continues to put strain on the mining sector . It appears that government ’ s focus is shifting to the construction industry , which is said to create more jobs for every R1-million spent . 6
In addition to the outdated legislation , lack of guidance , no special dispensations provided for smaller scale operations , and the perceived subjective approach being applied by SARS , it may be more difficult to succeed in claiming diesel refunds .
It is therefore advisable that mining entities invest more time and resources in designing and maintaining record-keeping systems that are aligned with the requirements of the Act . Where necessary , it may be beneficial to reach out to knowledgeable advisors to support them with this process . This may very well just tip the scales in favour of the diesel refund claimant .
Taking a proactive approach A whole-of-business approach is essential to ensure that individuals responsible for compiling logbooks and attending to SARS verifications and audits are familiar with the detailed mining processes of the entity .
To prevent a subjective approach by SARS during verifications and audits , it is imperative that logbooks adhere strictly to the legislative requirements . Any ambiguities should be resolved through thorough legislative analyses and with reference to interpretative materials , such as case law .
Regular logbook health checks performed by an independent advisor , may also be valuable to ensure that all the relevant requirements have been met . •
References :
1 . The National Treasury . 2024 . 2024 Medium term budget policy statement . Accessed : 2024-11-19 . Available [ online ]: chromeextension :// efaidnbmnnnibpcajpcglclefindmkaj / https :// www . treasury . gov . za / documents / mtbps / 2024 / mtbps / FullMTBPS . pdf . 2 . Ibid . 3 . Minerals Council of South Africa . 2024 . Mining input costs eased further in September 2024 . Accessed : 2024-11-19 . Available [ online ]: ile :/// C :/ Users / evadne . bronkhorst / Downloads / sept _ 2024 _ update _ mining _ input _ costs . pdf .
4 . The National Treasury . 2017 . Review of the diesel fuel tax refund system Accessed : 2024-11-19 . Available [ online ]: chrome-extension :// efaidnbmnnnibpcajpcglclefindmkaj / https :// www . treasury . gov . za / comm _ media / press / 2017 / 20170215001 % 20- % 20REVIEW % 20OF % 20THE % 20 DIESEL % 20FUEL % 20TAX % 20REFUND . pdf .
5 . For Annexure C go to https :// www . africanmining . co . za / research-papers / [ We will upload the document to our website for reference ]
6 . The National Treasury . 2024 . 2024 Medium term budget policy statement . Accessed : 2024-11-19 . Available [ online ]: chrome-extension :// efaidnbmnnnibpcajpcglclefindmkaj / https :// www . treasury . gov . za / documents / mtbps / 2024 / mtbps / FullMTBPS . pdf .
28 • African Mining • February 2025 www . africanmining . co . za