Ministers' indecision over customs duty cases is tying up BILLIONS - trade consultants
Patel’s indecision has tied up billions in overdue ITAC customs duty investigations
- Billions of rand is currently tied up in overdue customs duty investigations says XA International Trade Advisors
- The problem comes back to indecision on the part of the Trade and Finance Ministers, charges XA Director Donald MacKay
Billions of rand is currently tied up in overdue customs duty investigations says XA International Trade Advisors.
The company on Tuesday released its first XA Open Cases Report, which outlines how long it is taking for these cases to be finalised.
The problem comes back to indecision on the part of the Trade and Finance Ministers, charges XA Director Donald MacKay.
Delays in taking final decisions in dozens of Itac (International Trade Administration Commission) customs duty investigations have resulted in the loss of R1.25bn in revenue to the fiscus, he says.
They... have material implications for affected industries, and are inhibiting trade and investment.
Donald MacKay, Director - XA International Trade Advisors
Bruce Whitfield talks to MacKay on The Money Show.
It appears to be going wrong **before** it gets to Sars... so while it is sitting at Itac or with the Minister of Trade or the Minister of Finance. They are not taking decisions... so many cases are just remaining unresolved for years and years.
Donald MacKay, Director - XA International Trade Advisors
If you're looking to remove duties because there's no domestic supply of the product, you're currently overpaying by about R2 billion in taxes, which should be circulating back into the businesses.
Donald MacKay, Director - XA International Trade Advisors
It's vital to firstly get clarity on who does what MacKay says.
There were 2 court cases in 2018 which said the final decision maker in all of these duty matters, is in fact the Minister of Finance - which I think surprised everyone, possibly including the Minister of Trade at that time... That has never been put into law...
Donald MacKay, Director - XA International Trade Advisors
Companies are also finding **after** they applied for their duty increase removal and it's been approved, Minister (Ebrahim) Patel says 'no, I'd like a little bit more'... He might ask you to lock in your prices for three years, or make a new investment. Many companies are probably baulking at the idea of this being put in front of them right at the end of the process.
Donald MacKay, Director - XA International Trade Advisors
This article first appeared on CapeTalk : Ministers' indecision over customs duty cases tying up BILLIONS of rand - report
