Share

Concern over poor private sector investment in SA

Cape Town – Parliament’s standing committee on finance is deeply concerned about the lack of private sector investment in the economy, said Yunus Carrim, ANC MP and committee chairperson on Wednesday.


MPs were debating the consideration of National Treasury’s Fiscal Framework and Revenue Proposals following the 2017 Budget Review that was presented on February 22.

Carrim said if the private sector investment continues to decrease and be stagnant, National Treasury should consider raising corporate income tax, which is currently at a low 17%.

He added that the committee noted Finance Minister Pravin Gordhan’s intention to change regulations so as to improve tax administration and collection which will clarify the powers of the Finance Minister.

“We would like an update from the Davis Tax Committee on the progress of the investigation into tax administration and the new operating model at SARS,” Carrim said.

He further asked National Treasury to be cognisant of the “regressive nature” of a fuel levy, as it has a disproportionally negative effect on the poor who spends a large part of their income on transport.

Carrim also urged National Treasury to consult widely before considering increasing value-added tax (VAT). “We ask you to consider a model that will protect the poor and low-income earners.”

David Maynier from the Democratic Alliance said in his speech that it is deeply concerning that South Africa’s net loan debt stands at over R2.2trn.

“To illustrate this, our net loan debt is equivalent of the debt of R47 000 per person in South Africa. It is staggering,” Maynier said.

He said the DA believes it’s time to implement a debt ceiling. “We’ll make proposals for that in the coming year.”

It’s a pity that government didn’t follow up on its intention to sell non-strategic assets, such as the sale of Vodacom shares in 2015/16, Maynier said. “If government, for example, sell its stakes in Telkom, it could have raised revenue of R14.7bn, which could be used fund infrastructure investment.”

Floyd Shivambu from the EFF said his party welcomes the increase of a dividend withholding tax, although it should be increased from 20% to 40%.

“And we think corporate income tax should also be raised. It’s currently 17% and it could play a critical role in contribution to revenue.”

Shivambu urged government to institute legislation that forces business to have a minimum of 50% black ownership. “An Act should facilitate that,” he said.

Mkhuleko Hlengwa from the IFP in his speech called for a better working relationship between the National Treasury and SARS. “It can’t be in the national interest if these two organisations are at odds with each other.”

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.1%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders