SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 14 OF 2002

9 SEPTEMBER 2002

SARS ANNOUNCES AN INCREASE IN INTEREST RATES FOR PURPOSES OF LEGISLATION IT ADMINISTERS

With effect from October 01, interest rates charged in respect of outstanding taxes, duties and levies, as well as interest rates paid by SARS on refunds in terms of the various Acts administered by the Commissioner for SARS will increase. This increase in the interest rates was [?] gazetted on Friday 13 September 2002 (Notice 1159, Government Gazette No. 23817) following the approval granted by the Minister of Finance.

The following interest rates will apply with effect 01 October 2002:

Income Tax Act, 1962:

• The rate at which interest will be charged in respect of outstanding tax will increase from 13% to 15,5%.
• The rate at which interest will be paid to taxpayers in respect of refunds of provisional tax overpaid will increase from 9% to 11,5%.
• The rate at which interest will be paid to taxpayers on refunds of tax where an appeal is upheld in court or conceded by the Commissioner will increase from 13% to 15,5%.

Value-Added Tax, 1991:

• The rate at which interest will be charged in respect of outstanding VAT will increase from 1,1% to 1,3% per month
• The rate at which interest will be paid to vendors in respect of VAT refunds will increase from 13% to 15,5%.

Customs and Excise Act, 1964:

The rate at which interest will be charged in respect of outstanding customs and excise duties will increase from 13% to 15,5%.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA