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You are here: Home / Archives for Budget

Budget

7 March 2024

President Ramaphosa visits new Mpumalanga hospital

Location: News

President Ramaphosa visits new Mpumalanga hospital

President Cyril Ramaphosa has conducted a site visit and inspection of the newly constructed Middelburg Hospital in Mpumalanga.

“This is most impressive. It’s a modern, state-of-the-art and it’s going to serve the community of about 330 000 people. This is development. This is how we are developing our country from a social and health point of view and we’re doing it cost-effectively as well,” the President said on Thursday.

This was ahead of the District Development Model Presidential Imbizo held at Emalahleni in the province the same day.

“I also appreciated the way there was thorough consultation with various stakeholders in the area to bring in small and medium enterprises, and to bring in communities, who participated in one shape, form or the other in the construction of the hospital,” the President said at the site visit.

He praised the participation of the community in the construction of the hospital and said it has many benefits.

“This is what we should do because in many ways, it also avoids this very bad practice that has emerged of construction mafias. When the community is well-organised and is part of the construction of a facility, everybody feels like they own the facility and they can benefit from a job point of view, and from a supplying point of view.

“I appreciate also the funding model that was used. It was funded from the budget but over a five-year period in various phases, not all at once. To do it over a set period is clearly the way to go,” he said.

President Ramaphosa added that the hospital serves as a precursor for things to come.

“This is going to be a clean, well-run hospital and a really good demonstration of what the NHI [National Health Insurance] is going to be all about. So this is a very good precursor to the NHI.

“Those who have been criticising the NHI [we now]... have... an improved facility and improved infrastructure… this is it. We are ready for the NHI at this site. When the NHI Bill is signed [into law], this is going to be one of the exciting sites for NHI implementation,” he said.

READ | NHI receives in excess of R1 billion allocation

The President will later lead government’s interaction with communities and stakeholders.

Themed ‘Leave No One Behind’, the 12th Presidential Imbizo promotes participatory democracy and inclusive development by allowing community members and stakeholders to voice proposals and express any concerns or dissatisfaction they may have about conditions in the district or province.

The imbizo will get underway at the Sy Mthimunye Stadium in Emalahleni. - SAnews.gov.za

NeoB
Thu, 03/07/2024 - 13:32

191 views
Read morePresident Ramaphosa visits new Mpumalanga hospital
7 March 2024

Wits students stage ‘sleepover’ protests

Location: News

The university says its made 530 emergency beds available and has reopened applications to on-campus residences

Read moreWits students stage ‘sleepover’ protests
6 March 2024

SA ranks number 1 in Africa for safety systems in aviation

Location: News

SA ranks number 1 in Africa for safety systems in aviation

The International Civil Aviation Organisation (ICAO) has rated South Africa’s safety oversight system at 91.11% thereby placing it at number one in Africa and number 18 in the world, alongside Norway.

Addressing a media briefing on the state of the aviation sector on Tuesday, Minister of Transport Sindisiwe Chikunga said the ICAO also did not raise any significant safety and security concerns in both the safety and security audits, which happened within eight months of each other. 

In the past two to three years, South Africa has participated in four key international safety and security audits and assessments by the International Civil Aviation Organization (ICAO), and the United States safety and security regulators namely, the Federal Aviation Administration (FAA) as well as the Transportation Security Administration (TSA).

“I am elated to announce that South Africa performed very well in all these audits and assessments. The US-Federal Aviation Administration (FAA) recognised South Africa's safety oversight system as meeting ICAO’s safety standards and recommended practices and therefore confirmed that South Africa retains its Category 1 status with the standards of the United States International Oversight Safety Audit (IOSA) Programme. 

“The Transport Security Administration granted South Africa’s cargo security system permanent recognition following an assessment of the South African Civil Aviation Authority (SACAA).  South Africa still holds the European Union (EU) recognition for the States cargo security system,” Chikunga said in Pretoria.

The Minister said these outcomes do not only validate the quality of South Africa’s global aviation footprint, but it also confirms that South Africa's systems are competing favourably with the best in the world of aviation.

“South Africa is proud of the continued 0% fatal accident rate held in the commercial airlines sector for nearly four decades. Our target is to maintain this record for decades to come. One of the current administration’s strategic targets is to reduce accidents in the general aviation sector by 50%. 

“At the end of the previous 2022/23 financial year, the number of accidents had decreased from 147 to 113 accidents, which translated into a 23% decrease from the 2021/22 period. The fatal accidents decreased from 12 to 9 fatal accidents, translating into a 25% decrease with the number of fatalities decreasing by 29.4%,” the Minister said.

During the 2021/22 period at the height of COVID-19, South Africa recorded a spike in accidents in a non-scheduled private flying space. This has been attributed to pilots being “out of practice” caused by a lack of refresher training during the hard lock down periods of the pandemic.

“As we head towards closing off this 2023/24 financial year, we have recorded 97 accidents to date. While we are projecting these numbers to marginally be lower than the previous reporting period, the number of fatal accidents has increased to 13, which is four more than data from the 2022/23 financial year.

“To curb these accidents which happen in a non-scheduled private flying space, the SACAA has developed and implemented a General Aviation Safety Strategy in consultation with the industry where we are employing reputable safety strategies to attain a reduction in both categories - accidents and fatalities,” she said.

SACAA has been on an automation journey migrating their internal business processes to ensure a paperless entity. 

In the last year, the regulator has launched an eServices portal where operators can submit their certificate renewal applications online and also pay online. 

“In August 2022, the South African National Blood Services was licensed to deliver blood and essential medical samples, using drones in what became a ground-breaking achievement for the country. The value of this initiative is understated, more so when we consider that 32% of South Africans live in rural, and in most cases, hard-to-reach destinations.

“Blood delivery to local clinics that may not be accessible by road transport is now possible and has now been made easier and much faster to access. This is an innovative step in the history of blood transportation. Every second you gain in saving a life is critical,” the Minister said.

International Air Service Licensing

As of 1 February 2024, the regulator is administering the domestic and international air service licensing councils.

“This means that all administrative support will include developing effective systems that will enable the smooth processing of air service license applications and Foreign Operator Permits (FOPs) and includes the issuance and storage of related information thereof.

“The Department of Transport will still be responsible for the budget allocation to the respective Councils for each financial year, and such allocation shall be used towards the activities and functions of the Councils,” the Minister said.

Since this decision took effect from 1 February 2024, SACAA launched an automated system, which is done in a phased approach.

“The first phase, which commenced from 01 February, saw the processing of foreign operators permits through a newly developed system. The next phase, which is currently in progress, is to automate the submission and processing of domestic and international air service licences. In the interim, the SACAA has given clarity to the industry in how the applications for air service licence will be processed until automation is implemented,” Chikunga said. – SAnews.gov.za

 

 

nosihle
Tue, 03/05/2024 - 12:20

730 views
Read moreSA ranks number 1 in Africa for safety systems in aviation
5 March 2024

Three suspects arrested in connection with VBS corruption

Location: News

Three suspects arrested in connection with VBS corruption

Three suspects, aged 33, 42 and 64, were arrested during an early morning raid in Limpopo by the Serious Corruption Investigation of the Hawks.

The 64-year-old suspect, who was previously the Chief Financial Officer and Acting Municipal Manager for the Greater Giyani Local Municipality, was arrested in Lulekani.  

He was arrested on charges of contravention of the Municipal Finance Management Act (MFMA), corruption and money laundering.

The 42-year-old suspect was arrested in Giyani. She was a Budget Manager and Acting Chief Financial Officer, and currently the Chief Financial Officer, of Giyani. She is facing charges of flouting the MFMA.

The third suspect, aged 33, is a businessman. He was arrested in Muhuya village, Thohoyandou, on allegations of money laundering.

During 2017, two of the suspects invested a total of R148 656 282.00 into VBS Mutual Bank. Large amounts were paid to VBS affiliated companies as so-called "commissions".

Some of this money was laundered through several bank accounts, including that of the third suspect.

From the suspect’s company, a total amount of R87 600.00 was paid to the first suspect over a period of time as gratification, which was a great loss to the Giyani Municipality.

The trio will make their first appearance on 6 March 2024 in the Giyani Magistrates’ Court for formal bail application. – SAnews.gov.za

Edwin
Tue, 03/05/2024 - 15:02

277 views
Read moreThree suspects arrested in connection with VBS corruption
5 March 2024

Unlock Savings: Embrace the Benefits of Unboxed Deals with RS Imports

Location: MyPR

In the world of retail, the term “unboxed deals” often raises eyebrows and piques curiosity. What exactly are unboxed deals, and why are they gaining popularity among savvy shoppers? At RS Imports, we’re here to demystify the concept and shed light on the benefits of embracing unboxed deals for your shopping needs. What Are Unboxed …

Read moreUnlock Savings: Embrace the Benefits of Unboxed Deals with RS Imports
5 March 2024

SANDF deployment not done without planning

Location: News

SANDF deployment not done without planning

By Siphiwe Dlamini

The deployment of a contingent of the SA National Defence Force (SANDF) as part of the SADC Mission to the Democratic Republic of Congo (SAMIDRC) and the subsequent tragic deaths of Captain Simon Mkhulu Bobe and Lance Corporal Irven Thabang Semono have provided plenty of grist to the opinion mill.

It should. We are a democracy and this is a people’s defence force – and its role and its use should be debated.

There are major and justifiable concerns about budget implications. The lack of sufficient air cover for the mission and that this deployment might be fatally overstretching the SANDF’s capacity has been raised by some as a concern.

None of these are new concerns; successive chiefs of the SANDF have raised these precise issues in the past, along with their chiefs of service.

But these concerns ignore the reality that this deployment was not done in haste, nor without the requisite planning. There have been numerous discussions at the highest echelons of government about the need to support the SANDF in all its needs, including funding. There is a real commitment to do this.

We should also not forget three critical points in the current discourse, well intentioned or otherwise, about the SANDF.

The first is that the mission in the DRC is not solely a South African tasking but a request from the greater Southern African Development Community to ensure the stability of the region as the United Nations began its well-publicised drawdown of Monusco, its 20 year-long mission to stabilise the DRC, in December last year.

Secondly, there are other countries that will be also contributing to this mission, some of whom will be able to directly address the issue of air cover through the capabilities of their own air forces.

Thirdly, the SANDF has been part of Monusco since its inception, commanding the mission and regularly providing commanders for the smaller three-battalion strong multinational Force Intervention Brigade, the only UN force mandated to use force offensively.

The biggest issue of all though is peacekeeping. SA is a continental leader and has never shied away from the often onerous responsibility to lead these processes, participating from the front, if necessary, putting its money and its troops where its mouth is.

This is not an easy decision and it is not without risks, all of which weigh very heavily upon our commander-in-chief, President Cyril Ramaphosa; the political head; Defence and Military Veterans Minister Thandi Modise; and chief of the SANDF, General Rudzani Maphwanya, before deploying these national assets.

These soldiers are not conscripts, they are volunteers, but all of us know the risks that they will face in the field – and the sacrifices they may well be asked to make – to keep this peace.

It is easy for the keyboard warriors to argue that our horizons should be limited to our land, sea and air borders, but the reality is that the beating of a butterfly’s wings in Kivu or Goma could very well create an unstoppable tsunami in Johannesburg or Cape Town.

It’s too late to deal with an insurgency not just on your doorstep but within your borders. This is part of the rationale for the SANDF’s participation in the SADC Mission in Mozambique (Samim) to keep the insurgency in Cabo Delgado at bay.

That is the apex threat – of war and terror in our cities and countryside, but there are other threats, too, of even more refugees seeking a better life in SA, potential economic and criminal risks which put further strain on our law enforcement agencies, the home affairs department, the department of social security and, indeed, our fiscus.

It is said that a stitch in time saves nine. It doesn’t help to just create nonporous borders, where the SANDF is already performing a yeoman and unheralded service as part of the ongoing Operation Corona.

We have to try to resolve issues and create the conditions that are crucial to allowing a sustainable and enduring state of peace on the continent that could otherwise threaten the way of life we aspire to, even though they are not our direct neighbours.

It is this philosophy that has guided the SANDF ever since the days of our first commander-in-chief Nelson Mandela, when he worked tirelessly to bring peace to the Great Lakes Region.

*Siphiwe Dlamini is Head of Communications at the Department of Defence.

**This article first appeared in The Citizen on 1 March 2024.

 

Janine
Tue, 03/05/2024 - 09:54

317 views
Read moreSANDF deployment not done without planning
4 March 2024

SAPS and Public Works called to Parliament over Telkom Towers debacle

Location: News

Trade union Solidarity says it’s been complaining about the deplorable state of the police building for years, but to no avail

Read moreSAPS and Public Works called to Parliament over Telkom Towers debacle
3 March 2024

2024 – The Year of More

Location: MyPR

More Holidays, More Experiences, More Magical Moments If your December break left you scrolling through social media, living vicariously through your friends’ posts of fabulous holidays and yearning for those experiences to be yours, it’s time to make a change. Let this be the year you turn those dreams into reality and embrace the year …

Read more2024 – The Year of More
1 March 2024

Komani’s unusable R20-million “sport facility”

Location: News

“What we got was nothing compared to what we were promised,” says resident

Read moreKomani’s unusable R20-million “sport facility”
1 March 2024

Auditor General gives damning report on police headquarters

Location: News

This was just hours after workers at the Telkom Towers office were evacuated after it was declared unfit for human use

Read moreAuditor General gives damning report on police headquarters
29 February 2024

When life brings change, keep your insurer informed

Location: MyPR

The real value of vehicle and household insurance is that it offers us peace of mind, allowing us to go about our daily lives in the knowledge that the value of our prized possessions is protected. It’s a quiet assurance that we have protection to help us navigate life’s uncertainties. Susan Hunt, Chief Actuary at …

Read moreWhen life brings change, keep your insurer informed
28 February 2024

Regent Business School hosts thought-provoking webinar unveiling insights from National Budget 2024 analysis

Location: MyPR

In the wake of the annual Budget address delivered by South Africa’s Minister of Finance, Enoch Godongwana, on 21 February, Regent Business School took the helm in fostering an illuminating webinar. This hybrid gathering, spearheaded by the school’s respected Dean, Dr Shahiem Patel (who is also a Non-Executive Director of the Institute of Bankers) alongside …

Read moreRegent Business School hosts thought-provoking webinar unveiling insights from National Budget 2024 analysis
27 February 2024

Smart Money Moves: A Simple Guide to Budget-Friendly Insurance in South Africa

Location: MyPR

It’s time to think smart about our finances, especially when it comes to budgeting. Let’s break down some easy-to-understand tips for managing your money wisely, focusing on insurance in South Africa. Keep Your Insurance Going Money gets tight, we know. However, cancelling your insurance might not be such a smart move. Apart from exposing yourself …

Read moreSmart Money Moves: A Simple Guide to Budget-Friendly Insurance in South Africa
26 February 2024

Kamagra Oral Jelly Effectiveness: Real Results?

Location: MyPR

When it comes to managing erectile dysfunction, a myriad of solutions promise to restore the vitality and confidence that can be shaken by this common condition. Among them is Kamagra Oral Jelly, a product heralded for its supposed effectiveness as an ED treatment. Originating from India, this medication has piqued the interest of many searching for an affordable and …

Read moreKamagra Oral Jelly Effectiveness: Real Results?
26 February 2024

Unemployed doctors march to Union Buildings

Location: News

They are calling for the president to intervene and make sure medical professionals are employed

Read moreUnemployed doctors march to Union Buildings
26 February 2024

5 Good Reasons To Fall In Love With Your Insurer

Location: MyPR

All conversations with your insurer should start with ‘hey bae’… Because your insurer has your back and always wants what’s best for you. You should also get comfortable with using that scary 4-letter word that starts with ‘L’. That’s right: Life. Because your insurer knows that life happens, and they’re there to help you pick …

Read more5 Good Reasons To Fall In Love With Your Insurer
26 February 2024

Unsuccessful NSFAS applicants urged to lodge an appeal

Location: News

Unsuccessful NSFAS applicants urged to lodge an appeal

The National Student Financial Aid Scheme (NSFAS) has encouraged students whose application for financial aid has been rejected or withdrawn, to lodge an appeal with the scheme.

Rejected students must submit an appeal by logging on to the myNSFAS website and supplying all the required information within 30 days of receiving their application results. 

“Unsuccessful applicants will have an appeal option appear on their myNSFAS accounts and they can click on to it to start the appeal process,” NSFAS said.

The scheme noted there are a number of reasons why an application is rejected, and this includes a household income of more than R350 000 per annum, failing to meet academic eligibility, and an incomplete application, among others.

NSFAS emphasised that students or applicants must provide all the necessary documents, warning that failure to do so, may affect or derail the outcome of the appeal.

“To strengthen your appeal, gather all relevant documentation that supports your case. This may include academic records, financial statements, affidavits, or any other documents that demonstrate your need for financial assistance,” NSFAS said.

The scheme also noted that the appeal decisions are subject to budget availability. 

How to submit NSFAS Appeal

• Visit the myNSFAS portal https://my.nsfas.org.za 
• Log into your myNSFAS account
• Select the ‘Track Funding Progress’ option
• Check the application progress tabs

“If your application status shows that you are unsuccessful, you may submit an appeal by clicking on the ‘Submit Appeal Tab.’ Once you are on the ‘Application Appeal’ page, you can look for the reason for your unsuccessful application status. 

“You will then be able to choose the appeal reason. Upload certified supporting documents to support your reason [and] Click ‘Submit Appeal,” NSFAS explained.

When submitting an appeal letter, NSFAS advised applicants to compose a compelling appeal letter addressing the reasons for their application’s rejection. 

“Be concise yet detailed, explaining any extenuating circumstances that may have affected your application. Personalise your letter to highlight your unique situation and commitment to your education.

“Ensure you adhere to NSFAS’s guidelines for submitting appeals. Pay attention to deadlines and submission methods to avoid any delays or complications in the process.

“Once you have submitted your appeal, patiently await NSFAS’s review process. This may take some time, so remain proactive and responsive to any requests for additional information,” NSFAS said.

Applications for funding officially closed on 15 February 2024.

NSFAS has made upfront payments of R2.8 billion to universities and R580 million to Technical Vocational Education and Training (TVET) colleges to cover student accommodation and book allowances for the month. – SAnews.gov.za

 

GabiK
Mon, 02/26/2024 - 11:51

519 views
Read moreUnsuccessful NSFAS applicants urged to lodge an appeal
26 February 2024

Breakthrough in Learnership Accessibility Challenges

Location: MyPR

EduPower’s Innovative Learnership Model Enables Skills Development in Under-Served Communities Learnerships provide invaluable skills but for many eager candidates, they remain inaccessible as most training venues are predominantly situated in city centres. The daily commute for potential learners who live some distance from these locations, therefore, can pose financial challenges. In an innovative first for …

Read moreBreakthrough in Learnership Accessibility Challenges
26 February 2024

Transforming Furniture with Chalk Paint: Before and After Inspirations

Location: MyPR

Are you tired of your old, worn-out furniture? Looking for a budget-friendly way to breathe new life into your space? Enter chalk paint – the versatile, easy-to-use medium that can transform even the most drab pieces into stunning works of art. In this blog, we’ll explore the magic of chalk paint through a collection of before and …

Read moreTransforming Furniture with Chalk Paint: Before and After Inspirations
26 February 2024

What Problems Does Straton Prepaid Solve?

Location: MyPR

Straton Prepaid primarily caters to individuals who use prepaid electricity and water meters, aiming to solve several problems they might face: 1. Managing prepaid meters: Problem: Difficulty understanding meter readings, managing balances, and topping up credit conveniently. Solution: The website offers information on different types of prepaid meters,their features, and troubleshooting tips. It also provides …

Read moreWhat Problems Does Straton Prepaid Solve?
22 February 2024

Phaahla welcomes budget allocation

Location: News

Phaahla welcomes budget allocation

Finance Minister, Enoch Godongwana has announced an allocation of R848 billion for the Department of Health over the Medium-Term Expenditure Framework (MTEF), a move that has been welcomed by the Minister of Health, Dr Joe Phaahla.

The money includes an additional R11.6 billion to help cover last year’s wage agreement, R27.3 billion for infrastructure, and R1.4 billion for the National Health Insurance (NHI) grant over the same period.

“The allocation for the NHI is a demonstration of the government’s commitment to this policy,” Godongwana said when tabling the 2024 Budget in Parliament on Wednesday. 

READ | NHI receives in excess of R1 billion allocation

He said that activities such as upgrading health facilities and improving the quality of care are necessary to ensure that they meet the minimum accreditation criteria for contracting under NHI.

They are also, according to Godongwana, key enablers in improving the public healthcare system and should be undertaken.

“Minister of Health, Dr Joe Phaahla, welcomes the decision by the National Treasury to favourably consider that the current shrinking budget allocations have a negative impact on the effective functioning of the public health system in the country.” 

The department has announced that they also have been allocated an additional budget of R3.7 billion for the 2024/25 financial year to compensate employees in the sector.

This will help address the increase in the wage bill as well as the recruitment of more staff, including nurses and medical doctors.

Phaahla has been in consultation with Godongwana on implementing plans to strengthen the health system, including the recruitment of essential health workers like medical doctors and other professionals.

“Although the budget may not address all health service delivery challenges at once, it will go a long way to enable the department to respond to the immediate and key priority needs to strengthen the health system. These include activating vacant but unfunded essential posts,” said the Health department.

The department will soon outline plans with timelines for recruiting and appointing health workers, including recently graduated health professionals and unemployed medical doctors. – SAnews.gov.za 
 

 

Gabisile
Thu, 02/22/2024 - 10:30

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Read morePhaahla welcomes budget allocation
22 February 2024

Challenges can be overcome by working together – Enoch Godongwana

Location: News

Challenges can be overcome by working together - Enoch Godongwana

Minister of Finance Enoch Godongwana has called on South Africans – both citizens and private business – to work together with government to resolve the challenges the country faces.

The Minister was speaking during a post-Budget Speech discussion held in Cape Town on Thursday morning.

In his Budget Speech on Wednesday, Godongwana highlighted electricity and logistics challenges as two of the key issues facing the economy.

“We need to work together to address these challenges. For instance, there are a number of business people who have come forward, business associations that have come forward and bringing in talent to work with government in what is called NECOM [National Energy Crisis Committee] to address the electricity challenges.

“Building on that template, business has come forward, working with government, and developed what is called now the [Freight] Logistics Roadmap. We need, as South Africans and even as government, not to be arrogant and accept solutions from different people across the board,” he said.

Godongwana said on crime, government has brought in business “to work with us on how we can deal with crime”.

In a frank discussion regarding the country’s challenges, the Minister said government takes responsibility for some issues.

“We have got challenges. The government has got to take the responsibility for some of these challenges. I can’t say I’m happy with the fact that we’ve not been able to deal with the electricity challenge for 16 years. It is a fundamental flaw…which has cost the economy substantially,” he said.

On the question of why National Treasury left most taxes – barring sin taxes and carbon tax – unchanged, the Minister said solutions to broadening revenue lie elsewhere.

“Our tax strategy is to broaden the base than increasing taxes. If you…compare us to our peers, tax to GDP, we are not comparing favourably. So…we should not be working hard to say how much should we tax people more; we should be saying how do we broaden that tax base.

“There are a number of ways of doing it and first, fundamentally, is to grow the economy but we can only grow the economy if we bring all of our solutions and I think we can do it working together,” he said. – SAnews.gov.za

 

NeoB
Thu, 02/22/2024 - 11:37

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Read moreChallenges can be overcome by working together – Enoch Godongwana
22 February 2024

Discovering the Best Bullpadel Rackets

Location: MyPR

Diving into the world of Bullpadel padel rackets, it’s clear that there’s a racket for every type of player, from beginners to professionals. Let’s unravel the details to help you find the perfect Bullpadel racket for your game. A Brief History and Overview Bullpadel, established in 1995 in Spain, is a padel-only brand renowned for its …

Read moreDiscovering the Best Bullpadel Rackets
22 February 2024

Government to introduce global minimum corporate tax

Location: News

Government to introduce global minimum corporate tax

Over the next few years, government plans to implement a global minimum corporate tax to limit the negative effects of tax competition. 

“Multinational corporations with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15%, regardless of where their profits are generated. The proposed reform is expected to yield an additional R8 billion in corporate tax revenue in 2026/27,” Finance Minister Enoch Godongwana said on Wednesday in Parliament.

Delivering the 2024 National Budget Speech, Godongwana encouraged interested parties to provide comments on the draft Global Minimum Tax Bill published today. 

The draft Global Minimum Tax Bill aims to limit the race to the bottom of effective corporate tax rates for large multinationals, with countries competing to attract income by offering low tax rates and tax incentives.

“Implementing the minimum tax in South Africa will bolster the corporate tax base. South Africa helped develop tax rules to address base erosion and tax challenges arising from the digitalisation of the economy as a member of the Steering Group of the OECD [Organisation for Economic Co-operation and Development] /G20 Inclusive Framework on Base Erosion and Profit Shifting.

“These rules are designed to limit the channels that multinationals use to shift profits from high- to low-tax countries. The 2023 Budget Review outlined the two pillars of this framework, which were endorsed by more than 135 countries in 2021. The first focuses on the digital economy and the coherent tax treatment of multinationals,” the 2024 Budget Review said.

The framework will be implemented through a multilateral convention to ensure that the biggest and most profitable multinationals reallocate part of their profit to all countries where they sell their products and provide their services.

“The second pillar introduces the global minimum tax. It ensures that any multinational with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15 %, regardless of where its profits are located. Government proposes to introduce two measures to effect this change – an income inclusion rule and a domestic minimum top up tax – for qualifying multinationals from 1 January 2024.

“The income inclusion rule will enable South Africa to apply a top-up tax on profits reported by qualifying South African multinationals operating in other countries with effective tax rates below 15%.

“The domestic minimum top-up tax will enable SARS [South African Revenue Service] to collect a top-up tax for qualifying multinationals paying an effective tax rate of less than 15 % in South Africa,” National Treasury said.

The Explanatory Memorandum and Draft Global Minimum Tax Bill will contain more details on these proposals as well as a request for public input.

Broadening the tax base

“Our long-term tax policy strategy remains focused on broadening the tax base while improving tax compliance and administrative efficiency. Visible progress has been made in rebuilding and modernising the South African Revenue Service. 

“The tax authority has expanded the tax register, improved debt collections and reduced fraudulent refunds and trade valuations. This has led to improvements in revenue collection,” the Minister said.

To address the high levels of illicit tobacco, SARS is deploying CCTV and related technologies at licensed tobacco manufacturers.

“Investigations and prosecutions have resulted in R10 billion in additional assessments from the key players in the illicit gold and tobacco industry, of which over R4 billion from key players in the illicit gold and tobacco industry. 

“These and other efforts have assisted with the improvement in revenue. Our bigger challenge, as I have stated earlier, is that our pie is not growing fast enough and this limits our ability to generate sufficient revenues to distribute among our priority areas,” Godongwana said. –SAnews.gov.za

 

nosihle
Wed, 02/21/2024 - 14:08

632 views
Read moreGovernment to introduce global minimum corporate tax
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