Readers' tips to Pravin

Johannesburg - Fin24.com readers were quick to respond to the treasury's Budget tips' invitation, dishing out suggestions on how incentives may work towards solving national issues.

Eskom's power supply woes were on numerous readers' minds, including Mohamed Loonat, who said the power utility's rebate system for solar geyser is ineffective.

"Why not make it mandatory for short-term insurers to replace all geysers as and when they burst with solar geysers of an acceptable quality?" asked Loonat. "That way, Eskom saves money being paid out of its finances, and the solar geyser roll-out is done on a mass scale, in an orderly fashion and with minimal red tape or delays.

"It also means no additional cost to customers, and the insurance company bears the cost it would have anyway for replacing the burst geysers."

Hermann Botha, claiming to speak for retired individuals, said government should do more to encourage working South Africans to save.

"Please increase the [tax] limit which a person can deduct for making investments. The [low] interest rate is hitting our pockets badly and we need help. I am sure this is also one way to encourage people to save."

Similarly, a reader said tax deductions on savings aimed at education costs should be tax deductable.

"I think that if this were the case there would be a big drive by parents to invest in their children's education," the reader said. "This will lessen the burden on government and ensure that our children do not get into debt traps via student loans even before they have started their working careers."

Ashraf Khan had the following suggestion for ensuring the stadiums are full during the 2010 Fifa World Cup: "Good day Pravin, greetings from Doha. Can you please issue a ruling that all money paid for World Cup tickets will be tax deductible?" he asked.

Charlie Nicolls said government can save a lot of money by cutting on duplication. For example, he said having to fork out on provincial governments is unnecessary. "Surely the simpler route is to have a national government that has its ear close to what the public want," he said. "Why do we need all this duplication and enormous cost?"

Finance Minister Pravin Gordhan will deliver the National Budget in parliament on Wednesday.

- Fin24.com