- SARS says its concerted effort to clamp down on tax non-compliance has resulted in R172bn for the fiscus, drawn across all tax types. However, the revenue service warned that tax compliance was under strain, dropping from 65% to 62%. Tax morality is heavily tied to a well-run and efficient government. Over the last decade, widespread corruption and wasteful spending have not instilled this morality in taxpayers. SARS’ compliance drive yielded R12bn in debt collections from large businesses, R42bn from high wealth individuals, and R6.8bn from corporates.
- Former state president FW de Klerk died at his home in Cape Town on Thursday at the age of 85. Referred to as “the last white ruler of South Africa”, De Klerk shared the Nobel Peace Prize in 1993 with Nelson Mandela “for their work for the peaceful termination of the apartheid regime, and for laying the foundations for a new democratic South Africa”.
- Finance minister Enoch Godongwana presented his inaugural budget speech today, in which he resisted pressure to use the fiscal space that has delivered a R120bn boost to tax revenue and faster GDP growth from commodities windfall to announce new spending commitments, including meeting demands for a basic income grant. The budget was largely in line with what former finance minister Tito Mbowenni had said, and maintained the plan to achieve a primary surplus in 2024/2025. Godongwana was firm that the current fiscal framework stood and that he and Mboweni were on the “same wavelength” on everything, including disappointment with the slow implementation of structural economic reforms. The budget addressed the critical electricity crisis in the country, and confirmed that it is now official policy for SA to “diversify energy generation” and that the state will be “taking additional steps towards a competitive energy market”. In respect of SA’s inadequate broadband spectrum, the budget confirmed that the release of broadband spectrum is set to start with an auction process on March 1, 2022. For full coverage of the budget policy statement, visit BizNews.com.
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