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.
Author: Nyasha Musviba
Budget 2014: 10 things worth knowing
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.
Budget 2014: Pravin Gordhan tells South Africans to ‘seize opportunities’ in Africa
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.
Budget 2014: Eskom, Transnet, Sanral expected to spend R382bn
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.
Budget 2014: 'Disappointing' Budget leaves little room for health boost
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.
Budget 2014: Carbon tax delayed, fracking favoured in Gordhan's Budget
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.
Budget 2014: Increase in bursary funds may avert more student protests
By Sarah Evans Treasury will increase funds to the National Student Financial Aid Scheme, which is likely to help more than 500 000 students per year. With some universities across the country currently besieged by student protests over exorbitant fees and a shortage of bursary funds, national treasury announced on Wednesday that it will increase funds to the National Student Financial Aid Scheme (NSFAS). Government expects this to assist more than 500 000 students per year. The South African Students Congress (Sasco) called for mass protests this year over a shortage of NSFAS funds, which it said has excluded millions of poor students from the higher education system.
Budget 2014: We have heard your pleas, says Gordhan
Finance Minister Pravin Gordhan’s final Budget speech before elections in May is a masterplan to please the masses. On the eve of an election in the historically significant 20th year of South African democracy, Finance Minister Pravin Gordhan sang a carefully crafted song. It was not the voice of a sycophantic public servant; nor was it the voice of a self-congratulatory bureaucrat. Instead, he adopted the voice of the listener: the voice of the disgruntled electorate. He spoke for those who had voted his party into power five years ago, and those who had recently publicly booed the president of the same. Read Gordhan’s full speech (PDF) A foray near the end of his speech best summed up his tone. “Puso e utlwa dillo tsa maAfrika Borwa! Ons het gehoor! Korrupsie moet gestop word! [We have heard you! Corruption must be stopped!] MaAfrika Borwa deserves better … Read More …
Taxation on unrealised accounting profits
By Nico Theron, Senior Tax Consultant, Grant Thornton Johannesburg In South Africa, income tax is usually payable on actual receipts and accruals, but for every rule, there are always exceptions. One exception to this rule applies to companies that deal in instruments, interest rate agreements, or option contracts. The exception allows them, if they so choose, to pay tax on a market-valuation basis. This means, irrespective of actual receipts and accruals, the interest and amounts payable or receivable on option contracts and interest rate agreements are taken into account for tax purposes, according to changes in the market value of the underlying instruments over a period.
Taxation of Income protection policies
By Doné Howell, Tax Partner Grant Thornton Johannesburg The latest in the wave of changes that affect the taxation of insurance policies that exist for the benefit of an employee, but are paid by the employer, is the recent legislation regarding the taxation of income protection policies. Although the effective date of this legislation is 1 March 2015 (the 2016 tax year), it is important for employers to be aware of the impending changes to the PAYE system and to consider the possible review and renegotiation of your policies in the next year.