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PwC on turning to CNG: Companies will recover cost earlier

Friday, September 13, 2013

PricewaterhouseCoopers, in its budget memorandum, said on the subject of gasoline to CNG conversion that individuals were previously entitled to 25 per cent of the cost incurred in conversions up to $10,000. Companies were entitled to wear and tear of 130 per cent of the cost incurred.


“This measure proposes to harmonise the incentives to provide a tax allowance of 100 per cent of expenditure to both companies and individuals. While this may appear to be a more attractive incentive, it will produce the same result for individuals.


“However, the incentive to companies is likely to be regarded as more attractive as it allows for earlier recovery, albeit at a reduced amount. However, until the infrastructure is put in place to allow for easy access to CNG and the remaining fuel subsidy removed, it is likely that the populace will be slow to take advantage of this relief,” the professional services firm stated.



Uncertainty over ‘notorious’ property tax


The professional services firm PricewaterhouseCoopers, in its 2014 budget memorandum, had this to say about the phased reintroduction of the land and building taxes from July 1, 2014: “As with the previous budget, the Government once again indicated a phased reintroduction of the notorious property tax. Until further details are furnished by the Government, there remains uncertainty as to how key issues (such as the valuation of property and rates) will be addressed.”


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