Month: February 2014

Finance Minister Pravin Gordhan delivered his 2014 Budget Speech on 26 February 2014. While we did not anticipate major Tax changes in the current year, the complexity and challenges of the existing Tax environment means that it is time for Tax to be a board room level topic again.

Cape Town – Consumers still trying to enjoy a few small pleasures in life would have to dig a bit deeper into their pockets once again. Excise duties on alcoholic beverages (especially beer, sparkling wine and spirits) will increase by between 6.2% and 12%. Finance Minister Pravin Gordhan, did, however, think it in order not to increase the excise duty on traditional African beer or beer powder. Consumers who like to take a smoke break, will have to cough up 68 cents per packet of 20 cigarettes more from now on, while those enjoying the luxury of a cigar will pay R5.11 more per 23g.

Cape Town – Income tax relief of R9.3bn and massive future spending on social grants are among the main features of this year’s pre-election budget. Other highlights include a budget deficit that is expected to narrow to 2.8% of GDP by 2016/17, supporting a stabilisation of debt at 44.3% of GDP. Tabling his 2014 Budget in the National Assembly on Wednesday, Finance Minister Pravin Gordhan told MPs he expected a budget deficit of four percent of GDP for this year and next (2014/15). Tax revenue this year (2013/14) was expected to be R1bn higher than projected in the 2013 budget. Gordhan said real growth in non-interest spending should average 1.9% over the next three years. A spending ceiling committed government to a cap of R1.03trn in 2014/15, R1.11trn in 2015/16, and R1.18trn in 2016/17.

Cape Town - Finance Minister Pravin Gordhan has tabled his fifth and probably last National Budget in Parliament, strongly emphasising acceleration of economic growth to the National Development Plan’s goal of economic growth of between 5% and 6% as he kept spending under control and still surprisingly had room for some personal tax relief (especially for lower income earners). It is  a conservative budget with no big surprise. It will probably please most people with the coming elections in May in mind. The highlights are:

Carien du Plessis @carienduplessis #budget2014 26 February 2014 14:17 Rather than just “make a noise” about implementing the National Development Plan (NDP), government has put it in the budget, Finance Minister Pravin Gordhan has said. When reporters asked him about the NDP this morning ahead of his budget vote in Parliament, Gordhan said “the proof is in the book”. The budget review he tabled sported a long list of “NDP critical actions” and explanations on how these were being funded or implemented.

By Carien du Plessis@carienduplessis#budget2014 26 February 2014 14:02 Drowning in budget facts? Carien du Plessis compiles a list of what you should know. 1. The budget is R1.25 trillion. R1.1 trillion of that is noninterest spending, and it will grow to R1.6 trillion in 2016/7 (by 2%). 2. Sin taxes, as always, are going up. For example, a can of 340ml beer will cost 9c more, cigarettes are up 68c for a pack of 20 and whiskey is up by R4.80 per bottle. Tax on traditional beer will not go up. It’s a steal adding only 7.82c to the cost of a litre.

South Africans should go out and take up opportunities on the African continent, Finance Minister Pravin Gordhan has said. Addressing reporters this morning ahead of his budget speech in Parliament, Gordhan said South Africa has not fully recovered from the global economic crisis of the past five years, but “all isn’t dull either”. He said South Africans shouldn’t be complacent. “What South Africans need to do as the public and private sector is to seize potential opportunities on the African continent even more strongly than they have,” he said.

Capital expenditure by major state-owned companies has been projected to reach R381.9-billion over the next three years, says the national treasury. Capital expenditure by major state-owned companies is expected to reach R381.9-billion over the next three years and investments by Eskom, Transnet and the South African National Roads Agency Limited (Sanral) will account for 90% of it, the national treasury said in its budget review.

The Rural Health Advocacy Project says the Budget was “disappointing” as it does not make provision for improvements in healthcare service delivery. Finance Minister Pravin Gordhan’s 2014 Budget speech was “disappointing”, according to Daygan Eager of the Rural Health Advocacy Project at the University of the Witwatersrand.   He said that Gordhan’s commitment to lowering the budget deficit leaves little space for improvements in healthcare service delivery.

By  Sipho Kings The 2014 Budget has delayed the carbon tax, punted shale gas, budgeted for more independent energy, and asked that mines help fix acid mine drainage. Finance Minister Pravin Gordhan has delayed the carbon tax by one more year to 2016. Last year, he said it would start by January 1 2015. This was “to allow further consultation”. The point of the tax is to punish companies that do not lower their carbon emissions, but also to provide incentive to companies that change the way they do business.