Leasing companies and private bus operators met on Wednesday under the direction of the National Treasury to sort out an administrative mess up of the newly introduced VAT on lease rentals of passenger coaches. rn
rnThe Treasury directed leasing companies to set off any VAT payments made by bus operators - on lease rentals signed before to January 1st 2004 - against the following months rentals.rn
rnA 15 percent VAT on passenger bus rentals was introduced by the November budget, but was to hit only those leasing agreements signed from January 1st 2004 - agreements from the beginning of the year.rn
rnDue to a delay in transmitting this crucial bit of information the leasing companies charged bus operators with VAT on all leasing agreements. rn
rnAlthough the VAT was collected only for the month of January so far, some bus operators threatened to go on strike on Thursday unless the issue was resolved and the unnecessary VAT payments refunded.rn
rnThe matter was finally sorted out on Wednesday wit