Dear Alpha Security Client
I trust by now you are aware that Alpha Security & Alarms is dedicated to serving its clients, and to keep the same amount of vehicles doing active response and crime prevention in conjunction with other security forces.
The month of February 2018 has being a remarkable month of change in South Africa in more than one way. We have a new president and the main topic of discussion is that the Minister of Finance Malusi Gigaca has made a few fundamental changes in his budget speech.
During his budget speech he mentioned two factors that Alpha Security & Alarms needs to communicate to our faithful and loyal clients.
Firstly, the minister raised Value Added Tax (VAT) which was previously at 14% to be increased. He announced, and I quote;
“An increase in the value-added tax rate from 14% to 15%,”
Secondly, he mentioned that there will be additional fuel levy added to the fuel price, again I quote;
“A 52 cents per litre increase in the levies on fuel, made up of a 22 cents per litre for the general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy”
These announcements have repercussion for the company; you are all aware that an armed response company normally pays a large percentage of its income towards fuel to keep the vehicles patrolling in the areas, to do active crime prevention.
Due to these announcements Alpha Security & Alarms management and I had to take a hard look at the implications. Due to these unforeseen increases by the Minister, I had to make the decision to inform all of our clients that your monthly contribution will be adjusted to compensate for these announcements.
What does this mean? I endeavoured to keep it as simple as possible; the calculation of the 52c per litre of fuel was calculated as follows:
Average Litres of fuel used per month over the past 12 months = X
Total Alpha Security Clients = Y
(X x 52c) = R 1.41 Excluding VAT per client
Please note that from 1st April 2018 your monthly contribution will increase by R1.41 to pay for the fuel levy and then the addition of the 1% VAT.
For example: if you paid R350.00 monthly excluding VAT your new monthly premium will be R 350.00 + R1.41 (Fuel Levy) = R 351.41 + 15% VAT = R404.12.
Thank you for your continued loyal support.
Mornè Le Grange