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Arrest of Nongoma mayor commended

Location: News

Arrest of Nongoma mayor commended

KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC, Thulasizwe Buthelezi, has commended the arrest of the Mayor, Deputy Mayor and Speaker of Nongoma Local Municipality on charges of fraud and corruption.

Buthelezi said the arrests send a strong message that corruption will not be tolerated and demonstrate government’s commitment to rooting out corruption and restoring accountability within the municipalities.

The MEC made the remarks during a meeting held this week at the council chamber of the Nongoma Local Municipality, where he met with all councillors and introduced Mpumelelo Bongani Mnguni as the new Acting Municipal Manager.

Mnguni’s appointment follows a recent High Court judgment, which set aside the previous appointments of the Acting Municipal Manager and Acting Chief Financial Officer.

The court judgment highlighted the significant financial strain on the municipality due to frivolous legal battles.

“The municipality faces significant financial challenges, with employee costs exceeding 50% of the budget, an overdraft, and exhausted project grants. The Acting Municipal Manager has been tasked with stabilising the financial situation and ensuring uninterrupted service delivery,” Buthelezi said.

The MEC reassured his commitment to supporting all municipalities in the province and will continue to take decisive action to uphold the law and ensure that municipalities deliver on their mandate. – SAnews.gov.za
 

GabiK
Fri, 11/29/2024 - 11:50

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Read moreArrest of Nongoma mayor commended

Collective effort to alleviate poverty, reduce inequality

Location: News

Collective effort to alleviate poverty, reduce inequality

As South Africa marks 30 years of democracy, President Cyril Ramaphosa has acknowledged the great progress government has made in lifting millions of South Africans out of absolute poverty.

The President was delivering his annual address to the National Council of Provinces (NCOP) in Parliament, Cape Town on Thursday. 

The address and debate was held under the theme: “Dedicating our Efforts Towards Reducing Poverty and Tacking the High Cost of Living”.

The President highlighted that in 1993, 71% of South Africans lived in poverty, by 2010 the poverty rate had dropped to 61% and in 2020, it was at 56%.   

He further acknowledged that people’s lived experiences confirm the persistence of poverty and inequality.

“As we work to rebuild the economy, to create more employment and open opportunities for emerging businesses, we continue to assist the poorest and most vulnerable in our society.

“We provide various forms of support and protection through the ‘social wage’.  This includes the provision of social grants, free basic services, health care, basic education, higher education, social housing and transport. When debt servicing costs are excluded, around 60% of government’s budget is spent on the social wage,” the President said. 

President Ramaphosa said that while parties in the Government of National Unity differ on certain issues, they have committed themselves to inclusive economic growth and accelerated job creation.

“They have committed themselves to reduce poverty and tackle the high cost of living.  And, to advance these priorities, the parties to the Government of National Unity have committed themselves to build a capable, ethical and developmental state.

“The decision by the NCOP to dedicate this debate to focus on our collective efforts to reduce poverty and tackle the high cost of living is a worthy and timely response to the mandate of the people,” the President said.

President Ramaphosa emphasised that a vital part of the effort to reduce the cost of living is the provision of a free basic minimum of services to indigent households.

Through this programme, millions of people have been able to access basic needs like electricity and water.

He highlighted that social grants remain a lifeline for millions of people, particularly children, the elderly and persons with disabilities.

“The introduction of the Social Relief of Distress Grant during the COVID-19 pandemic has provided much-needed relief to as many as 11 million unemployed people at its peak. Today, around a half of all households in South Africa benefit from social grants.

“Among the measures to ensure that all South Africans have affordable access to sufficient food, government is looking at whether the basket of food items that is exempted from VAT could be expanded to include more basic products,” he said. – SAnews.gov.za

DikelediM
Thu, 11/28/2024 - 15:00

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Read moreCollective effort to alleviate poverty, reduce inequality

Zimbabwe Commits to Boost Domestic Health Financing

Location: News

World Health Organzation (WHO) - Zimbabwe
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Zimbabwe has taken a significant step towards strengthening its health system by committing to increase domestic financing through a health levy, a sugar tax, establishment of National Health Insurance and other initiatives. This commitment was made during a three-day national dialogue on health financing, aimed at exploring sustainable strategies to improve the country's health sector which brought together key stakeholders, including government officials, healthcare providers, civil society organizations, and international experts, to discuss innovative approaches to bolstering financing to the country's health system.

Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa announced $10 million through the Health Levy and $18 million through a sugar tax has been raised to date. These funds are intended to strengthen the country's health system and improve access to healthcare for all citizens.

“We will have periodical meetings between Treasury and the Ministry of Health and Child Care(MoHCC) to discuss major challenges facing the health sector, including budget utilisation, disbursements, cash support, as well as coming up with a minimum monthly health sector requirement to guide our cash flows,” he said.

The country is yet to meet the Abuja Declaration target of allocating 15% of its annual budget to health, leading to a healthcare system burdened by rising costs, limited resources, and inequitable access to care. Imposing taxes on unhealthy products like tobacco and alcohol can generate additional revenue for health programmes. Countries like Vietnam and South Africa have implemented such measures with varying degrees of success.

Key issues identified during the dialogue included the need to increase public revenue allocation to healthcare, improve the predictability and stability of funding flows, and strengthen accountability mechanisms. Collaboration with the private sector, establishing efficient cost-recovery mechanisms, ensuring health remains a priority in national budgets, leveraging indigenous knowledge systems, and timely disbursement of health funds were some of the recommendations brought forward during the meeting. In addition to sin taxes, levies, diaspora remittances, and climate financing, investing in preventive health programmes, expanding immunization programmes, and prioritizing allocation to primary health care and prevention of high-burden diseases were identified as some of the low-hanging fruits. 

To improve service delivery, shifting from siloed approaches to consolidated management structures, implementing cost-effective quality improvement initiatives, and identifying and eliminating wastage were also emphasized. Collaborating with civil society organizations, involving communities in decision-making, investing in capacity building for health workers, promoting innovation, developing social contracting policies, and promoting regional, national, and subnational knowledge exchange were also highlighted as important strategies. 

The World Health Organization (WHO) Representative to Zimbabwe Dr Desta Tiruneh commended the government's commitment to health financing and emphasized the need for collaboration between the MoHCC, the Ministry of Finance, and Parliament to implement proposed reforms and ensure equitable access to healthcare. He pledged WHO continued support to the government in implementing the recommendations provide during the dialogue and achieving the goal of Universal Health Coverage (UHC).

Distributed by APO Group on behalf of World Health Organzation (WHO) - Zimbabwe.

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President Ramaphosa concludes inaugural PICC under 7th administration

Location: News

President Ramaphosa concludes inaugural PICC under 7th administration

President Cyril Ramaphosa says the seventh administration has prioritised its commitment to scale up investment in infrastructure, as government seeks to boost the economy, create jobs, improve access to basic services, and the quality of life for citizens. 

President Ramaphosa said this at the conclusion of the inaugural Presidential Infrastructure Commission Council (PICC) under the seventh administration. 

The council convened to discuss, amongst others, a plan on dealing with crime and extortion at construction sites, the level of implementation of priority infrastructure projects and programmes, as well as strategic initiatives that are being developed to accelerate the pace and quality of infrastructure investments in the country.

“This administration has prioritised scaling up investment in infrastructure, as we seek to grow the economy, create more jobs, improve access to basic services, and improve the quality of life of our citizens. 

“Continuing the work of the sixth administration, we are working to involve the private sector in achieving our infrastructure development goals. It is encouraging that after a period of declining infrastructure spend, public sector capital expenditure is on the rise for the second straight year. 

“According to Statistics South Africa, last year, public sector institutions had a combined capital expenditure of R233 billion. This is an 11% increase on the previous year,” President Ramaphosa said. 

The council is constituted by the President, Deputy President, Ministers designated by the President, Premiers of provinces, Executive Mayors of metropolitan councils and the chairperson of the South African Local Government Association. 

Per the Infrastructure Development Act, the Council is tasked with, inter alia:

  • Coordinating the development, maintenance, implementation and monitoring of the national infrastructure plan; 
  • Coordinating the determination of priorities for infrastructure development;
  • Ensuring that infrastructure development in respect of any strategic integrated project is given priority in planning, approval and implementation;
  • Ensuring co-operation between organs of state affected by projects undertaken, and
  • Promoting investment and identifying and develop strategies to cause the removal of impediments to investment.

Implementation of Strategic Integrated Projects

The council noted that there are 19 completed Strategic Integrated Projects (SIPs) valued at R26 billion.

Of these projects, six are in transport, three in water and sanitation, one in energy, four in human settlements and five in student accommodation. 

Currently, 82 projects, valued at R437 billion, are in construction.

In addition to providing technical assistance and resources to help project sponsors prepare comprehensive business cases, ensuring they are economically viable and socially beneficial, Infrastructure South Africa (ISA) has played a pivotal role in supporting project sponsors to expedite approvals, authorisations, licences, permissions and exemptions with the relevant authorities. 

Over 654 requests for regulatory unblocking were lodged with ISA between 2020 and 2024. To date, 497 approvals have been granted and 157 are currently in progress.

The total project value of SIP projects gazetted between 2020 and 2024 has grown to R3 trillion, with the key drivers being the Eskom Programme (SIP 8, 9 and 10), the Embedded Generation National Programme and the Green Hydrogen National Programme (SIP 20E).

Aiding municipalities

The council agreed that there is a need to enhance the Municipal Infrastructure Service Delivery Model using ISA’s methodology, which emphasises project preparation using the Five-Case Model, which is planning and prioritisation, development of business cases, mobilisation of funds from private and public sectors, implementation of innovative solutions and effective monitoring.

This model will be piloted in four local municipalities and leverage external resources and technical capacity stemming from local and international partners. 

The following four municipalities will benefit from the “Adopt a Municipality” pilot initiative: Govan Mbeki Local Municipality in Mpumalanga, Kagisano-Molopo Local Municiapity in the North West, Umngeni Municipality in KwaZulu-Natal and Metsemaholo Local Municipality in the Free State.

This initiative, spearheaded by ISA, will address critical service delivery challenges, including persistent incomplete projects and infrastructure issues. ISA aims to drive urgent improvements over the next 24 months, with some projects being completed during this timeframe. ISA will hold further consultations on the next cohort of municipalities to be added to the initiative.

Crime and Extortion on Construction Sites

The council has lauded the contribution of the construction industry to job growth in the second and third quarters. 

According to the Quarterly Labour Force Survey released by Statistics South Africa earlier this month, the construction sector added 176 000 jobs, playing a pivotal role in reducing the national unemployment rate by 1.4% in the third quarter.

The council said the construction industry is vital for socio-economic development, employment and infrastructure improvement.

"Crime and extortion on construction sites must be condemned in the strongest possible terms," the council said, while welcoming efforts by the police in addressing criminal and extortion cases.

The council further noted that there is an indication of increasing trends in criminal activities on construction sites, despite government's efforts to embed social facilitation and involve law enforcement. Effective mitigation will require coordinated efforts from all stakeholders.

The council has made the following recommendations on the matter:

  • Law enforcement must be allocated more resources to deal with criminal activity and violence on construction sites.
  • Policy reforms in the construction sector must be prioritised.
  • Industry must adopt best practices in social facilitation and invest in security measures.
  • Infrastructure project leads must enhance community engagement and encourage communities to actively participate in project planning.

Programme of Action for the PICC Council in the 7th administration 

The PICC Council has identified eight pathways to driving infrastructure investment and growth in the next five years. 

These pathways will underpin the infrastructure investment plan of the 7th administration.

The eight pathways include:

Pathway 1: Institutional Coordination

Affirming Infrastructure South Africa as a single point of entry for priority infrastructure projects.

Pathway 2: Centralised Planning and Prioritisation

Establish a gateway mechanism for projects and programme that are deemed strategic/catalytic.

Pathway 3: Budget Reforms

Accelerate the implementation of broader reforms to enable infrastructure investment.

Pathway 4: Address Regulatory Bottlenecks

Streamline regulatory and approval processes to fast-track implementation of infrastructure projects.

Pathway 5: Municipal Bulk Infrastructure

Address funding and financing of municipal bulk infrastructure.

Pathway 6: Unlocking other sources of funding

Increase and diversify sources of funding for both project preparation and infrastructure funding & financing.

Pathway 7: Economic Regulation in Construction

Strengthen regulatory framework governing construction industry.

Pathway 8: Cancellation of Tenders, Social Unrest, Damage to Infrastructure and Crime

Improving governance of infrastructure projects and ensure close collaboration with law enforcement agencies. - SAnews.gov.za

DikelediM
Fri, 11/22/2024 - 11:01

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Read morePresident Ramaphosa concludes inaugural PICC under 7th administration

Construction mafia disrupts projects worth R63bn

Location: News

Construction mafia disrupts projects worth R63bn

Since 2019, construction site disruptions by criminal syndicates have disrupted over 180 projects worth R63 billion, using tactics such as extortion, intimidation, violence and sabotage.

“Their demands for up to 30% of contract value undermine the integrity of our procurement systems and delay critical infrastructure delivery,” the Deputy Minister of Finance, Ashor Sarupen, said on Tuesday in Durban.

Addressing the National Construction Summit on site disruption, the Deputy Minister said while the construction industry faces numerous challenges, none is more urgent than the persistent site disruptions by criminal syndicates and community protests.

South Africa’s construction industry is a vital cog in the economy as it contributes around 3% to gross domestic product (GDP), employs over 1.3 million South Africans, with 176 000 jobs added just in the third quarter of 2024. 

This sector is a lifeline for low-skilled workers, who often struggle to find opportunities elsewhere, however the disruptions undermine the sector’s potential.

“Construction projects also have an unmatched multiplier effect. For every R1 million invested in construction, more than three jobs are created. This is the highest multiplier across all sectors in our economy.

“It is no surprise that the government has identified infrastructure development as a cornerstone of our economic recovery. The 2024 Medium-Term Budget Policy Statement (MTBPS) reaffirmed our commitment to shifting government spending from consumption to investment. 

“This aligns with the President’s call to transform South Africa into a “construction site” to drive inclusive growth and job creation,” the Deputy Minister said.

Over the next three years, government plans to invest over R900 billion in the construction sector.

“Our reforms in procurement, infrastructure investment, and structural economic transformation are concrete commitments to changing the lived realities of millions of South Africans.

“However, to fulfill these ambitions, we must recognize that the construction mafia and site disruptions reveal deeper socio-economic fractures within our country.

“These disruptions are not merely an operational challenge. It is not only businesses that are being disrupted but the lives and livelihoods of our people,” the Deputy Minister said.

They also represent a critical stress test for the broader economic governance architecture, revealing the fragile interdependencies between formal institutional frameworks and reality on the ground.
 
“For now, these disruptions show how easily our carefully planned economic rules break down when they meet real-world challenges.

“They show just how difficult it is to conduct honest business in an environment of deepening unemployment, poverty, and the desperation it often leads to.

“To address this crisis, we need a holistic response—one that combines stricter law enforcement, improved governance, and community engagement to address the root causes of these disruptions,” Sarupen said. 

Government’s intervention
To address these challenges, the government is pursuing a three-pronged strategy, which includes Reforming Public Procurement; Expanding Public-Private Partnerships (PPPs) and Increasing Infrastructure Investment.

“The Public Procurement Act, signed into law earlier this year, lays the foundation for a more transparent, efficient, and inclusive procurement system.

“Under the new regulations, subcontracting will be allowed only where feasible and must follow due process to prevent abuse.

“Government entities will have the option to pay subcontractors directly, eliminating the delays and exploitation often experienced under the current system,” the Deputy Minister said.

He said these reforms are designed to empower small and emerging contractors while safeguarding the integrity of our procurement processes.

Government’s R900 billion in planned investments is supported by capital budgeting reforms to ensure that projects are well-planned and implemented on time, mobilising private sector funding to augment limited public resources and prioritising integrated urban development to create dynamic cities that enable economic activity.

“This is not just about bricks and mortar; it is about transforming lives by providing the infrastructure needed for housing, education, healthcare and transport.

“Our efforts to revitalize the construction sector are part of the broader reform agenda under Operation Vulindlela, a joint initiative between the National Treasury and the Presidency,” Sarupen said. 

Since its launch in 2020, Operation Vulindlela has delivered significant progress in:

1. Stabilising the electricity supply.
2. Reducing the cost and improving the quality of digital communications.
3. Securing sustainable water supply.
4. Enhancing the efficiency of freight transport.
5. Reforming the visa regime to attract skills and grow tourism.

“Phase 2 of Operation Vulindlela focuses on creating dynamic and integrated cities to support urbanization and economic growth. This will require substantial contributions from the construction sector to build the housing, schools, and transport infrastructure needed for our rapidly growing urban population,” the Deputy Minister said. - SAnews.gov.za

nosihle
Tue, 11/19/2024 - 11:08

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Government welcomes S&P’s decision to revise SA’s outlook to positive

Location: News

Government welcomes S&P’s decision to revise SA’s outlook to positive

Government has noted and welcomed S&P Global Rating’s decision to revise South Africa’s outlook to positive from stable and affirm the sovereign’s long-term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, respectively. 

According to S&P, the positive outlook reflects the agency’s view that increased political stability following the May 2024 general elections and impetus for reform could boost private investment and Gross Domestic Product (GDP) growth.

“S&P further states that since the formation of the new broad coalition of 11 political parties under the Government of National Unity (GNU), debt yields and portfolio inflows have improved, leading to easing financing conditions and currency strengthening,” the National Treasury said in a statement.

According to S&P, despite the government publishing weaker fiscal projections in the most recent Medium Term Budget Policy Statement (MTBPS) compared with those it published in the February 2024 Budget Review, the agency sees higher fiscal policy predictability regarding efforts towards achieving primary surpluses and fiscal consolidation. 

The National Treasury highlighted that government’s strategy focuses on achieving fiscal sustainability, supporting economic growth and critical social services, and addressing significant fiscal and economic risks.

The four pillars of the economic growth strategy are maintaining macroeconomic stability; implementing structural reforms; building state capability and supporting growth-enhancing public infrastructure investment. – SAnews.gov.za

 

DikelediM
Sun, 11/17/2024 - 11:14

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SA’s participation in the G20 reaffirms country’s values, says analyst

Location: News

SA’s participation in the G20 reaffirms country’s values, says analyst

By Gabisile Ngcobo 

Rio de Janeiro - South Africa’s participation in the Group of Twenty (G20) reaffirms the country’s values enshrined in the Constitution and, given the ongoing global geopolitical tensions, every effort to foster cooperation must be pursued.

This is according to Research Professor of International Politics at the University of South Africa (Unisa) Jo-Ansie van Wyk.

The G20 is a group of developed and emerging market economies that are dedicated to promoting economic cooperation, environmental sustainability, social inclusion and global equity.

“These are values that South Africa has enshrined in its foreign policy and, of course, are enshrined in our Constitution.

“For South Africans, our government’s participation is a reconfirmation of these values. Therefore, we can hold government democratically accountable if there is a disjuncture between its domestic and foreign policies,” she told SAnews. 

She said the summit was an opportunity for leaders to engage with their peers and counterparts. 

“These intergovernmental forums express a commitment to and the practice of global cooperation, rather than conflict. It offers states an opportunity to address matters of mutual concern, share responsibilities and serve as a communication medium to foster further international cooperation.”

On November 18 and 19, leaders of the G20 nations will meet in Rio de Janeiro to discuss an agenda set by Brazil, with the African Union (AU) participating as a full member for the first time.

Read I President arrives in Brazil to lead SA’s participation at G20 Summit

According to Van Wyk, this means that the Global South and the AU have an important task to communicate their needs and positions for the first time.

“Moreover, it is an opportunity to bring our resources as limited as they are to the table. We have, for example, excellent diplomats and astute businesspeople. Therefore, the Global South should promote the message it offers to global cooperation.” 

She urged the Global South to negotiate mutually beneficial commitments and agreements.

In addition, the Global South must ensure that at each state’s domestic level, it complies with good governance and human rights, she said. 

“This will add to our status when we speak at these forums. In this way, we can hold the Global North accountable to the same standards.”

Van Wyk argued that gatherings like the G20 and BRICS Summits serve their purpose, emphasising that diplomacy is an ongoing process rather than a one-time event, such as signing an agreement.

“It takes time for states to adjust to new ideas and domesticate new ideas and agreements due to each state’s unique constitutional system. Moreover, governments come and go, but states do not.”

BRICS stands for a group of significant emerging-market nations: Brazil, Russia, India, China, and South Africa. 

Recently, additional countries have joined the group, which now represents an increasing share of the global economy.

She emphasised that a significant outcome of BRICS+ is its expansion, along with its formalisation and institutionalisation through the New Development Bank, summits, and interactions among academics and business professionals.

She cited Eskom, which has benefitted from a loan from this new bank. 

Reports indicate that the bank approved a R18 billion loan to enhance water and sanitation services in South Africa, along with a R5 billion loan to support Transnet’s recovery program.

However, the Professor explained that the outcomes of these summits are often aligned with states’ existing international commitments at bilateral and multilateral levels. 

She said past G20 Summits achieved tangible results. This includes South Africa joining the intergovernmental forum and the historic inclusion of the AU.

“All these developments are concretely giving South Africa and the AU a seat at the table.”

Last year, government faced criticism for spending R180 million on the BRICS Summit, which some referred to as a “talk shop”. 

The Professor recognised that intergovernmental gatherings and summits are expensive; therefore, their outcomes must be concrete and align with South African interests.

“Our economy is not growing as expected, investment is not flowing in as expected, state capture has depleted the fiscus and DIRCO’s [Department of International Relations and Cooperation] budget is not sufficient to realise all our foreign policy ideals, commitments and responsibilities. 

“Therefore, it is very important that South Africans experience these summits as beneficial to us.” 

She emphasised that if funds are allocated for this purpose, equal amounts must also be directed towards domestic needs.

“This is difficult. Besides the status and prestige value of hosting the summit, we will be able to host world leaders and benefit from cooperation. Therefore, South Africa’s Presidency must be innovative, produce tangible results and grip the imagination of South Africans.” – SAnews.gov.za

Gabisile
Sat, 11/16/2024 - 20:13

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Read moreSA’s participation in the G20 reaffirms country’s values, says analyst

National Treasury calls for comments on policy proposals

Location: News

National Treasury calls for comments on policy proposals

The National Treasury has called on stakeholders to submit detailed written comments and proposals on the policy review of the taxation of alcoholic beverages, carbon tax and the tax treatment of collective investment schemes.

The policy review of the taxation of alcoholic beverages builds on the previous excise tax policy review in 2014 and proposes adjustments to the current policy framework.

The discussion document covers developments in the alcoholic beverages industry, including changes in the regulatory landscape, the prevalence of alcohol consumption, illicit trade in alcoholic beverages, international observations on alcohol taxation. 
It also covers the potential use of minimum unit pricing in the long term, and other administrative policy considerations in line with the concerns that have been raised by stakeholders.

“With this publication, the National Treasury requests stakeholders to submit detailed written comments and proposals to assist government to further develop an appropriate excise policy framework to reduce the harmful use of alcohol.

“After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget,” National Treasury said on Wednesday.

Written comments can be forwarded to 2024Alcoholreview@treasury.gov.za by close of business on 13 December 2024.

Carbon tax

In addition, stakeholders are encouraged to submit detailed written comments on phase two of the carbon tax design.

In the 2024 Budget, government announced its intention to publish a carbon tax discussion paper for public comment.

This paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s Nationally Determined Contributions (NDCs) commitments.

“South Africa has made commitments under the Paris Agreement to reduce emissions in the range of 398 to 510 million tonnes carbon dioxide equivalent (tCO2e) by 2025 and 350 to 420 million tCO2e by 2030, and to reach net zero emissions by 2050.

“The NDCs set out policies and measures to achieve these mitigation goals and adapt to climate change, and the finance requirements to support the transition to a lower carbon climate resilient economy.

“Carbon tax is an integral part of the package of policy measures aimed at addressing climate change as recommended in the 2011 National Climate Change Response Policy and the 2012 National Development Plan,” National Treasury explained.

The carbon tax discussion paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s NDC commitments.

The discussion document includes proposed adjustments to the basic tax-free allowance, carbon offsets, the electricity levy, the renewable energy premium and the energy efficiency savings tax incentive.

Stakeholders are invited to submit written comments on the draft proposals contained in this paper to carbontax@treasury.gov.za.

“After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024,” treasury said.
 

Tax treatment of collective investment schemes

In addition, National Treasury is also requesting the public to submit written comments on the draft proposals contained in the income tax treatment of amounts received by portfolios of collective investment schemes.

This discussion document stems from a statement in the 2020 Budget Review that indicated that National Treasury would undertake a review on the matter.

“In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts.

“After consultations, government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect role-players.

“This document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962- and puts forward various policy options,” National Treasury said.

Stakeholders are invited to submit written comments on the draft proposals contained in this paper to CIS-Tax@treasury.gov.za.

After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget.

The closing date for comments is close of business on 13 December 2024. -SAnews.gov.za
 

nosihle
Wed, 11/13/2024 - 12:35

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Read moreNational Treasury calls for comments on policy proposals

MTBPS welcomed by Cabinet

Location: News

MTBPS welcomed by Cabinet

The Medium Term Budget Policy Statement (MTBPS) is a demonstration of South Africa’s openness and accountability on spending.

This according to Minister in the Presidency, Khumbudzo Ntshavheni, who briefed the media on the outcomes of Cabinet's recent meeting.

The MTBPS was tabled by Finance Minister Enoch Godongwana in Parliament two weeks ago. 

“The MTBPS is part of our nation’s open and accountable budget cycle, which allows for medium to long-term financial planning of our nation’s finance. It also allows South Africans to hold government departments and entities to account on spending and gives investors surety over the country’s economic direction.

“[The MTBPS] gives effect to the commitments of the Government of National Unity to pursue rapid, inclusive and sustainable economic growth, and create a more just and equitable society by tackling poverty, inequality and unemployment,” she said.

Ntshavheni said Cabinet had welcomed the MTBPS, which supports the Government of National Unity’s aims.

During the delivery of the MTBPS in October, Godongwana highlighted four pillars to spur on inclusive economic growth, namely:

  • Maintaining macroeconomic stability.
  • Implementing structural reforms.
  • Building State capability.
  • Supporting growth-enhancing public infrastructure investment.

Ntshavheni said Cabinet is backing the statement delivered by Godongwana.

“Cabinet supports the four pillars to uplift the economy through macroeconomic stability, implementing structural reforms, building State capability and increasing public infrastructure investment.

“The country is also on track to be removed from the Financial Action Task Force (FATF) greylist, having already addressed 16 of the 22 action items identified ahead of FATF reassessment in 2025,” Ntshavheni said. – SAnews.gov.za

NeoB
Wed, 11/13/2024 - 13:01

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Chikunga launches Disability Rights Awareness Month

Location: News

Chikunga launches Disability Rights Awareness Month

Minister in the Presidency for Women, Youth, and Persons with Disabilities, Sindisiwe Chikunga, has called on all South Africans to remain actively engaged in fostering the inclusion of people with disabilities.

She emphasised the importance of collective support across every sector of society to make disability inclusion a lasting priority. 

The Minister was speaking at the launch of the 2024 Disability Rights Awareness Month (DRAM) in Lenasia, on Monday. 

“As we move through this month and beyond, let us all stay engaged, support these efforts, and encourage every sector of our society to make disability inclusion a permanent priority. Together, we are paving the way for a truly inclusive and accessible South Africa, where every person with a disability can thrive,” the Minister said. 

This year’s DRAM which runs from 3 November to 3 December, is held under the theme “Celebrating 30 Years of Democracy: Creating a Disability-Inclusive Society for a Better Quality of Life and Protection of the Rights of Persons with Disabilities”. 

Chikunga extended her gratitude to the host, the Johannesburg Council for the Disabled, for the incredible work they have been dedicated to since 1995. 

She said their commitment to providing a holistic, essential, and value-added approach to transform and uplift the social, economic, and professional lives of persons with disabilities has been exemplary. 

“I was truly inspired when I was briefed on the range of services you provide, from social work and skills development to learnerships and enterprise development. 

“We draw direct inspiration from the incredible amount of concrete measures that your institution has undertaken to champion the social, economic, spatial, and technological advancement of persons with disabilities,” Chikunga said. 

Over the past 30 years, numerous policies, legislative instruments, and government programs have earned country recognition as a respected champion of the global disability inclusion movement. 

The Minister said this was evident during the recent G7 Forum on Disability and Inclusion held in Italy.

“Disability inclusion is not merely a matter of advocacy; it is a constitutional imperative enshrined in our Bill of Rights. Over the past 30 years, we have embedded disability inclusion into various laws that comprise the country's legislative framework,” she said. 

These include the recently gazetted Framework on Self-Representation, which has implications for the composition of Boards of State-Owned Enterprises; the National Strategic Framework on Reasonable Accommodation; and the Universal Access and Design Framework, with norms and standards for universal accessibility in the built environment.

All persons with disabilities have access to free basic education and any young person coming from a home with an income bracket of R600 000 receives free higher education through the National Student Financial Aid Scheme.

Further, persons with disabilities receive a monthly direct cash transfer to support their basic needs.

South African Sign Language is now recognised as the 12th official language in South Africa.

More recently, the President signed the Public Procurement Act, which mandates that a portion of government procurement be sourced from businesses owned and controlled by persons with disabilities. 

During the Medium-Term Budget Policy Statement, the Minister of Finance Enoch Godongwana revealed that “Public procurement accounts for about 19% of consolidated government spending, totalling R1.5 trillion over the next three years”.

“As a department that represents the interests and well-being of this community, we will ensure that as the Treasury develops the regulations, priority is given to the work of institutions like the Johannesburg Council for the Disabled and others who are engaged in facilitating income-earning and productive opportunities for the community of persons with disabilities,” the Minister said. 

As government launches Disability Rights Awareness Month, the Minister called on individuals to reflect on the status of persons with disabilities globally, across the continent, and within our own borders. 

“This reflection is essential to evaluate where we have been, where we are, where we still need to go, and how we should measure progress in advancing the rights of persons with disabilities. The answers to these questions are crucial for the inclusive formulation of policies and legislative instruments, as well as for the co-design of our priorities and interventions,” she said. – SAnews.gov.za

DikelediM
Tue, 11/12/2024 - 12:58

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Treasury publishes operating budgets for municipalities

Location: News

Treasury publishes operating budgets for municipalities

National Treasury has published on its website the operating and capital budgets of municipalities, as adopted by their respective councils. 

“These budgets give an overview of expected revenue and expenditure trends in local government over the next three years, referred to as the 2024/25 Medium Term Revenue and Expenditure Framework (MTREF),” National Treasury said on Wednesday.

The revenue and expenditure numbers are aggregated from the annual budgets that municipal managers are legally required to submit to National Treasury and the relevant Provincial Treasury.

The published information is presented in a variety of ways, including aggregated municipal budget totals for the 2024/25 financial year and over the medium-term period. 

In addition, the information is presented per category of municipality and province. 

Highlights include:
•    The aggregated budgeted revenue for 2024/25 is R652.3 billion, which is expected to increase to R687.2 billion in 2025/26 and R728.7 billion in 2026/27.
•    Total municipal expenditure in 2024/25 is estimated to be R649.9 billion, increasing to R682.7 billion in 2025/26 and R720.4 billion in 2026/27. Total expenditure for 2024/25 is 6.2% higher than the adopted budget for 2023/24 financial year.
•    It is notable that aggregate municipalities will realise operating deficits on the operating budgets in the 2024/25 financial year, as the total operating expenditure increases at a higher rate than the revenue projections. This is an indication that municipalities are living beyond their means and a first sign of financial challenges. However, the situation is projected to improve in the outer years of the 2024/25 MTREF, as operating surpluses will be realised.
•    A net deficit of R2.1 billion is projected in the 2024/25 financial year, after considering revenue from external loans and internally generated funds. This is an improvement compared to a deficit of R9.3 billion in the 2023/24 adjusted budget and will result in a net surplus of R520.4 million in 2025/26 and R4.3 billion in 2026/27.
•    The main cost drivers are employee related costs and materials, and bulk purchases, representing 26.9% and 34.5% of the operating expenditure, respectively. Municipalities are experiencing a two-fold impact of the high electricity and water tariff increases; lower sales levels owing to changes in consumption patterns and increased bad debt as a result of affordability pressures.
•    Capital expenditure increased by 1.8% to R77.4 billion in 2024/25, compared to the original budget for the 2023/24 financial year. The percentage of capital expenditure to total expenditure is declining over the MTREF period. Capital expenditure represented 12.4% of the total expenditure in 2023/24 and is projected to decrease to 11.9% in 2024/25 and further to 10% in 2026/27.
•    Trading services represent 51.5% of the total capital expenditure of R77.4 billion in 2024/25; increases to 51.9% in 2025/26 and to 54.3% in 2026/27.
•    The 2024/25 capital expenditure budget reflects a R47.1 billion investment in new infrastructure,which is 60.8% of the total aggregated capital budget. Investment in the renewal and upgrading of existing assets is much lower at R13.3 billion (17.2%) and R17 billion (22%) of the total capital budget respectively.
•    Reporting on operational repairs and maintenance figures has been institutionalised as part of Section 71 in-year reporting. Municipalities allocated R33.9 billion to repairs and maintenance of assets in 2024/25. This will increase to R35.6 billion in 2025/26 and to R37.1 billion in 2026/27.

National Treasury publishes Local Government MTREF information on an annual basis. 

“Regularly published budget information enables communities to hold their municipal councils to account. The information is also used by National Treasury as the basis for the In-Year Management, Monitoring and Reporting System for Local Government (IYM). 

“The Section 71 reports published by National Treasury give an account of actual revenue collection and spending by municipalities, per quarter, against their budgeted figures,” National Treasury said.

All this information feeds into Municipal Money -- the open local government data portal -- which can be accessed as follows: www.municipalmoney.gov.za. 

In addition, the Municipal Money time series data can be accessed directly from http://municipaldata.treasury.gov.za. 

A new development that facilitates transparency is the GoMuni portal, which can be accessed on https://lg.treasury.gov.za/ibi_apps/signin by clicking on the public access tab. -SAnews.gov.za

nosihle
Thu, 11/07/2024 - 09:17

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Call to participate in UDZ tax incentive survey

Location: News

Call to participate in UDZ tax incentive survey

The National Treasury has called on all interested parties to participate in the Urban Development Zone (UDZ) tax incentive online survey as part of public consultation, which is key in any policy review process.

The UDZ tax incentive aims to address urban decay by stimulating property development in South Africa’s inner-city areas demarcated as urban development zones.

“In the 2023 Budget Review, the National Treasury announced an extension of the UDZ tax incentive sunset date to 31 March 2025 to consult stakeholders as part of a review of the incentive.

“The incentive came into effect in 2004 and is legislated in terms of section 13 of the Income Tax Act (No. 58 of 1962). In the 2024 Budget Review, government estimated that the UDZ tax incentive claims by companies resulted in R2.7 billion in tax revenue foregone for the period 2012 to 2022,” National Treasury said on Wednesday.

The objective of the survey is to collect data which will assist in evaluating the effectiveness of the UDZ tax incentive in achieving its objectives.

“Data sourced from the survey will be used to inform future tax policies on whether to continue with the incentive beyond this sunset date and if it continues, whether the current policy design is still appropriate. Decisions on the incentive’s future will be based on evidence of its value and impact made to date.

“Government values and understands the importance of certainty as the incentive is approaching its sunset date. The decisions regarding the future of the incentive should consider inputs from affected stakeholders.

“It is within this spirit that this survey is being published for public participation. It aims to provide investors, municipalities and all interested parties an opportunity to share their experiences with the UDZ tax incentive,” National Treasury said.

Further announcements on this incentive will be made in the 2025 Budget.

The final date for completing the survey is 29 November 2024.

To access the survey, the following link may be used : https://forms.office.com/pages/responsepage.aspx?id=jzRFGrQCmk-nqHeG9t0yRfDfb_QYL6JOmhO01YiWivlUOVpBSUZTUFJIWksxQlZVN0o5OVFFNUhBRy4u&route=shorturl

For technical inquiries please email TaxIncentiveReviews@treasury.gov.za for assistance. -SAnews.gov.za

 

 

nosihle
Wed, 11/06/2024 - 10:18

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