Q: I have a client
that conducts the mining, processing, screening and crushing of manganese.
There is no Eskom power, therefore the plant is run by a diesel generator. I am not too certain if my client qualifies for a diesel rebate. Please
advise me if a diesel rebate can be claimed from SARS.
A: From the facts provided to qualify for the diesel rebate in respect of
mining activities, your client must comply with Note 6(f) of Part 3 of Schedule
No. 6 to the Customs and Excise Act, Act No. 91 of 1964. At sub-note (uu) it
lists the vehicles and equipment which are deemed to form an integral part of
mining operations and diesel generators are not listed. Note (b)(v) deals with
diesel electricity generation but is limited to plants producing more than
200mw for the national distribution network.
Disclaimer: Nothing in this
query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a
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