LEVY COLLECTION POTATOES SOUTH AFRICA

Transcription

1 LEVY COLLECTION POTATOES SOUTH AFRICA POTATO INDUSTRY DEVELOPMENT TRUST

2 WHY THE CHANGE IN METHOD OF LEVY COLLECTION CAME UP FOR DISCUSSION A legal opinion on the validity of the statutory notices was seek by the National Agricultural Marketing Council in terms of requirements as set out in the Marketing of Agricultural Products Act. Adv Kűgel confirmed that only agricultural products (potatoes in the case of PSA) are listed under the Marketing of Agricultural Products Act and therefore can only potatoes be included in the notices for statutory levy. This means that potato bags and/or bag manufacturers could not be included in the new application for statutory levies, due to it not complying with the notices in terms of the classification as an agricultural product. Producer still stays liable for the levy.

3 Current method of levy collection Levy was collected from 10 September 2004 to 30 September 2011 at the following collection points. Point of collection Number of collection points % of total income Bag manufacturers 6 89% Processors 11 7% Seed Potato Growers 1 3% Others (Imports etc.) 10 1% Total collection points % During this statutory period paper bag manufacturers were written into the notices as point of collecting levies. Levy collection was approximately 98% succesfull

4 THE EFFECT OF CHANGES TO THE REGULATION The effect is that potato bags, bag manufacturers and agents for potato bags are excluded from the new notices regarding statutory levy on potatoes. In terms of the Act, and that levy collection can only take place at that point where the product is physically handled. According to Adv Les Kűgel it is still possible to collect levies from bag manufacturers by means of contractual agreements between producers, bag manufacturers and Potatoes South Africa.

5 COLLECTION POINTS Previously included in notices Currently included in notices Bag manufaturers (6) - Processors (11) Processors (11) Seed Potato growers (1) Seed potato growers (1) Importers (10) Importers (10) - Retailors (estimated) > (41) - Chain stores > (1000) Pre packers (5) - Exporters (23) - Producers (649) - Fresh produce markets (24) Total : Collection points (28) Total : Collection points > (1764)

6 POTATOES SOUTH AFRICA THOROUGHLY INVESTIGATED BOTH ALTERNATIVES Collection Plan A (as currently administered) Few collection points Collection highly effective (±98%) Levels of administration & costs low Collection points can be audited No administration for producers Fair and equal system (even playing field everyone pays) Systems are already set up at bag manufacturers Cash flow of Potatoes South Africa not under pressure

7 POTATOES SOUTH AFRICA THOROUGHLY INVESTIGATED BOTH ALTERNATIVES (CONTINUE) Collection Plan B Potatoes South Africa go through the process of registering traders, fresh produce markets, exporters, etc. Low collection efficiency (estimated at 80-85%). Low and in some cases none co-operation. Points of collection increases manifold. High and expensive levels of administration. Audits at producers, traders, fresh produce markets not cost effective. Cost advantage becomes a problem in terms of locating the smaller traders. Producers compel to submit monthly returns and to make monthly payments.

8 MANDATE FROM THE BOARD OF DIRECTORS The Potatoes South Africa Board of Directors decided to collect levies by means of contractual agreements between the three parties: Potatoes South Africa Packing manufacturers Producers That in collaboration with Adv Les Kűgel, the process be put into motion to include packaging manufacturers, as point of collection, in future notices.

9 COLLABORATION: PRODUCERS & BAG MANUFACTURERS In the interest of the potato industry, we depend on the cooperation of every producer and bag manufacturer. In terms of the levy notices the producer, at all times remain liable for the payment of levies. Those producers that chooses not to sign the agreement, will have to complete and submit monthly returns, as well as to pay over levies. In accordance with the notices these producers will be annually subjected to an external audit. As administrator, it remains the duty of Potatoes South Africa to manage registrations and to gather information from role players that handles product.

10 COLLABORATION: PRODUCERS & BAG MANUFACTURERS It is our opinion that in this regard it is easier to obtain the cooperation of producers, since - Potatoes South Africa is the organisation representing producers. Funds collected are appropriate directly towards benefiting producers. In order to achieve a common goal that is in the interest of all, particular our producers and the industry in general.

11 ONDERNEMING MBT BETALING VAN AARTAPPELHEFFING Ek (volle name) verklaar hiermee a. Ek is n aartappelprodusent met die bevoegdheid om die plase/regsentiteite op die teenkant van hierdie vorm aangedui, kontraktueel te bind. b. Ek is bewus daarvan dat n heffing op aartappels vanaf 4 Augustus 2011 tot 3 Augustus 2015 in terme van die Wet of die Bemarking van Landbouprodukte, 1996, afgekondig is, en dat die invordering van die heffing deur Aartappels SA as Heffingsadministrateur geadministreer word. c. Ek neem kennis dat die heffingsbedrae soos volg vasgestel is: Commodity Heffing per kg in sent 2011/ / / /2015 Tafel Aartappels 1,600 1,675 1,750 1,825 Aartapelmoere 0,635 0,665 0,695 0,725 Verwerking 0,750 0,785 0,821 0,856 Uitvoere 1,600 1,675 1,750 1,825

12 d. Ek is ook bewus daarvan dat die heffing deur alle aaratappelprodusente op aartappels wat vir verkoop bestem, betaalbaar is. e. Ten einde my heffingverpligtinge na te kom, verkies ek dat die heffing by die prys van verpakkingsmateriaal wat vir die verpakking van aartappels gebruik word bygevoeg word, en verleen hiermee my toestemming dat verpakkingsmateriaalvervaardigers die heffing aldus kan vorder en aan die Heffingsadministrateur oorbetaal. f. Ek is bewus daarvan dat indien verpakkingsmateriaal beskadig word, verlore gaan of andersins nie vir die verpakking van aartappels aangewend word nie, ek die betrokke heffingsbedrae van die Heffingsadministrateur kan terugeis, op voorwaarde dat ek aanvaarbare bewyse ten opsigte daarvan verskaf. g. Ek stem toe dat hierdie toestemming geldig sal bly totdat ek dit by wyse van skriftelike kennisgewing aan die Heffingsadministrateur herroep, en besef dat indien my toestemming aldus herroep word ek by wetswerking steeds aanspreeklik sal bly vir alle heffngs verskuldig, sowel as die maandelikse verskaffing van aantekeninge en opgawes wat kragtens wet vereis word, en dat die nakoming daarvan by wyse van statutêre oudit deur die Heffinsadministrateur op my/die regsentiteite op die teenkant aangedui, gekontroleer sal word. Aldus geteken hierdie dag van, 2011 te ID Nommer:

13 FOODS FOR THOUGHTS Follow your dreams with passion. Even if they sound impossible to reach it doesn t matter. Just the road towards your dream is already worth it! Thank You

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