New tax rebate system for farmers

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TREASURY has not confirmed changes to the current diesel tax refund system yet, but plans are afoot to make it easier for farmers to obtain a diesel tax rebate.

Previously, the forms and red tape surrounding the system, were a veritable nightmare and farmers will welcome a less onerous paper trail. The rebate in its current format has been operating since 2000 but the record-keeping for SARS purposes made it an uphill and time consuming battle for farmers who qualified for tax returns on diesel usage. A new diesel refund administration system will be announced in Budget 2019, which will see the diesel refund system being dealt with separately from the VAT system as in the past.

This is seen as a huge step forward to ease the burden of struggling farmers and enhance the viability of commercial farming.