29 Mar IMPORTANT INFORMATION REGARDING VAT INCREASE AND ASSESSMENT RATES
To all WPMC members and users of Killarney International Raceway
This mail contains the following important information:
# Increase in VAT
As you are aware, National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% with effect from 01 April 2018. Please note that there will accordingly be a commensurate adjustment to fees that are subject to VAT.
# Assessment Rates
In terms of the lease agreement with the City of Cape Town for the Killarney facility, the WPMC has to pay the assessment rates. The valuation of the facility has increased significantly in recent years with a corresponding increase in assessment rates. These increases were offset when the Club successfully applied for and was granted a 100% rebate against the rates. Unfortunately the application for a rates rebate was declined and our appeal, which was supported by our internal auditors, was also declined. The only option left is to litigate which the Club does not wish to do. As such the Club faces an annual rates bill in excess of R1m per annum which needs to recovered via small levies charged to all users of the facility. Should we be successful when applying for the rebate in future years, the levies will be removed.
By way of example the following will apply from 1 April 2018;
– Gate spectator entry fees will be increased by R10 (incl VAT) for adults.
– Race entry fees will be increased by R60 (incl VAT) for all forms of racing and users of the track.
– A levy imposed on all buildings/structures at Killarney. e.g. a single vehicle garage will have incur a monthly levy of R150 (incl VAT).
See attached document setting out in more detail what has transpired with the rates. Kindly contact the WPMC office for info related to your specific area.
# WPMC MEMBERSHIP FEES:
WPMC membership fees for 2018 reduce by ±20% from 1 April 2018. WPMC members get free access to all events organized by the WPMC (excl WRX) and other benefits.
# POSSIBLE PROTEST ACTION:
There are regular rumors about protest action in the Dunoon area, please exercise the necessary caution.