Have your say on tax proposals
The National Treasury and the South African Revenue Service (SARS) has published draft tax bills and draft regulations for 2024, for public comment.
The bills and draft regulations contain tax proposals made in the Budget Speech.
These proposals include the 2024 draft Taxation Laws Amendment Bill (2024 draft TLAB), the 2024 draft Revenue Laws Amendment Bill (2024 draft RLAB), the 2024 draft Tax Administration Laws Amendment Bill (2024 draft TALAB), draft Regulations on the method for determining the VAT liability in respect of casino table games of chance, issued in terms of section 74(2) of the Value-Added Tax Act, 1991, draft Regulations on amendments to the Carbon Offset Regulations prescribing carbon offsets in terms of section 19(c) of the Carbon Tax Act, 2019, and draft Regulations on domestic reverse charge relating to valuable metal in terms of 74(2) of the Value-Added Tax Act.
The 2024 draft tax bills, the accompanying draft Explanatory Memoranda containing a comprehensive description of the proposed tax amendments contained in the 2024 draft TLAB, 2024 draft RLAB, draft TALAB, the draft Regulations on determining the VAT liability in respect of casino table games of chance, draft Regulations on domestic reverse charge, draft Regulations on electronic services and Carbon Offset Regulations, can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites.
“More general information underlying the changes in rates, thresholds or any other tax amendments can be found in the 2024 Budget Review, available on the National Treasury website.
“With respect to the 2024 RLAB published for comment on 21 February 2024 and public workshops held on 6 June 2024, National Treasury and SARS invite a second round of comments in writing on this revised 2024 draft RLAB,” the Ministry of Finance said on Thursday.
The public can forward written comments to the National Treasury’s tax policy depository at 2024AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za by close of business on 16 August 2024.
National Treasury and SARS invites comments in writing on the 2024 draft TLAB, 2024 draft TALAB, the draft Regulations on determining the VAT liability in respect of casino table games of chance, draft Regulations on domestic reverse charge and draft Regulations on electronic services and Carbon Offset Regulations.
Written comments can be sent to the National Treasury’s tax policy depository at 2024AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za by close of business on 31 August 2024.
Appeal for more organ donors
The Department of Health has appealed to citizens to sign up to become organ and tissue donors in a bid to improve someone’s quality of life or even save someone’s life, especially those who are very sick or dying from a life-threatening disease or organ failure.
“Organ donation is when organs such as the heart, lungs, liver and kidneys are removed from one person and transplanted into another person,” the department explained, adding that one donor can save up to seven lives and transform over 50 lives.
Meanwhile, tissue donation is when tissues in the body such as skin, corneas and bone are removed from one person and transplanted into another person.
It is estimated that over 2 500 people are on the active waiting list for organ and tissue donation, while others lose their lives while waiting to receive a lifesaving gift.
“Currently, organ donors are in very short supply because of limited knowledge amongst citizens,” the department said.
The department, in collaboration with various non-governmental organisations, said they will use the month of August as part of Organ and Tissue Donation Awareness Month.
According to the department, anyone aged 18 years or older can become an organ or tissue donor without expecting financial reward, and subject themselves to certain medical conditions that require one to wait or be physically well.
“One can donate organs such as the kidney and liver lobe and continue to live a normal and healthy life because organs like the liver regenerate over time.”
However, it is illegal in South Africa and other parts of the world for anyone to sell or trade human organs or tissues as that can perpetuate organ and human trafficking.
“An organ transplant takes place in both government and private hospitals after an individual has been declared circulatory (heart stopped beating) or brain dead, but is still being supported by artificial life support.
“The tissue donation and retrieval can still take place several hours and even days after death, but consent from the loved ones must be given.”
Potential donors can go to their nearest public or private hospital to ask for assistance on the steps to follow for one to donate, alternatively, call the Organ Donor Foundation on 0800 22 66 11 or visit www.odf.org.za.
Those interested can also contact the SA Bone Marrow Registry at 021 447 8630 or the Centre for Tissue Engineering at Tshwane University of Technology at 012 349 3500 or visit www.tissuedonation.org.za.
Justice department condemns alleged racism incidents
The Department of Justice and Constitutional Development (DJCOD) has condemned the alleged acts of racism at South African schools and committed to intensify the awareness of constitutional rights, including the prohibition against hate crimes and hate speech and the prevention and combating of these offences.
A racism row erupted at the Pretoria High School for Girls following the discovery of a WhatsApp group in which a group of white pupils allegedly sent messages to each other with racial undertones.
This was followed by the revelation of an incident at Table View High School where a substitute teacher allegedly used the ‘k’ word during a history lesson and another incident at Pinelands High School involving a ‘slave auction’ of black learners by their coloured counterparts. Both those schools are in the Western Cape.
“The [department] unequivocally condemns any acts of racism and racial discrimination and will intensify its efforts, in collaboration with the South African Human Rights Commission, the Commission for Gender Equality and the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities, to promote awareness of constitutional rights, including the prohibition against hate crimes and hate speech, aimed at the prevention and combating of these offences.
“The [department] is engaging the Department of Basic Education and will be monitoring how these matters will be handled and eagerly awaits the outcome thereof,” the DJCOD said in a statement.
The department emphasised that there remains no place in South African society for the use of racist language and behaviour.
“Our courts, especially our designated Equality Courts have pronounced on the use of the derogatory k-word – there is no place for such in a constitutional democracy which seeks to foster unity in diversity. Indeed, there is no place for racism or any other form of related intolerance in our constitutional democracy, which is anchored on the supremacy of the Constitution. Such incidents perpetuate harmful racial discrimination, and are stark and painful reminders of our Apartheid past.
“This year South Africa marks 30 years of freedom and democracy since the country’s democratic elections in 1994. The advent of our constitutional democracy 30 years ago, ended decades of oppression under white minority rule, based on the racist ideology of black inferiority and white superiority, and ushered in a transition to a society “based on democratic values, social justice and fundamental human rights”,” the department added.
The department said hate speech and hate crimes have been declared an offence following the operationalisation of the Prevention and Combating of Hate Crimes and Hate Speech Act 16 of 2023.
This, notwithstanding the Constitutional imperatives on unfair discrimination and obligations of the Promotion of Equality and Prevention of Unfair Discrimination Act, 2000.
“South Africa’s National Action Plan to Combat Racism, Racial Discrimination, Xenophobia and Related Intolerance [NAP] was approved by Cabinet in 2019. The NAP gives effect to South Africa’s constitutional and international obligations, thus signifying government’s commitment to achieving the objectives of the NAP at the highest level.
“The [department], as the focal agency tasked by Cabinet to lead and coordinate the implementation of the NAP, in line with its constitutional mandate, unequivocally condemns all and any acts of discrimination, in whatever form they occur.
“It is of great concern that learners, almost all of whom were born in a country that is democratic and more inclusive, have to both experience racism and some still continue to hold such beliefs of racism, intolerance, hurtful and demeaning behaviour,” the DJCOD said.
DPWI to institute a commission of inquiry into Telkom headquarters building
Friday, August 2, 2024
Public Works and Infrastructure Minister Dean Macpherson says he will commission an independent report into the purchase of the former Telkom headquarters building in 2016 for R695 million and its subsequent renovation for R250 million.
The commission is meant to provide the Minister with recommendations within 60 days following its appointment and the necessary steps to address and remedy the situation.
Joined by the City of Tshwane Mayor, Cilliers Brink, on an oversight visit to the building on Thursday morning, Macpherson said it is unacceptable that for the past eight years, the building complex has barely been utilised and has been left vacant.
“It is disheartening that so much public funding has been spent to purchase and renovate the building, [and it has been] vandalised and occupied by criminal elements, thereby creating an additional burden for the City of Tshwane,” Macpherson said.
“We simply cannot spend more than eight years trying to establish how to secure public property while it deteriorates into lawlessness,” he said.
The Minister said the terms of reference for the independent investigation will be to provide him with answers to the following questions:
- What led to the Department of Public Works and Infrastructure buying the Telkom Tower complex and whether the purchase was necessary?
- What was the process which was followed for contracts to be appointed and whether the contractors were fit for purpose?
- Whether the purchase of the complex by the Department of Public Works was the best option for the South African Police Service?
- Whether any officials should be held accountable for the position the department finds itself in, in relation to the purchase and renovation of the building?
- Are there any grounds to reclaim any monies paid to contractors where work was not done, or not done according to building standards or health and safety standards?
- What will be the best way forward considering the current state of the building?
- What steps can be taken to avoid the situation from occurring again?
“As the Department of Public Works and Infrastructure, we need to start moving faster to ensure that public investments are secured and utilised to avoid the wastage of any public monies in a fiscally constrained environment.
“We simply cannot be spending millions to repair and address vandalism, and poor planning and spending by the department,” the Minister said.
“We will have to start working closer with role players such as the City of Tshwane to ensure our buildings are used for the public good and do not fall into disrepair and cause a burden for the municipality. By working together, we can reclaim these buildings, unleash infrastructure investment and turn the country into a construction site. Let’s Build South Africa,” the Minister said.
Electoral Commission receives clean audit
The Electoral Commission has received a clean audit report for the fourth time in a row.
“The Electoral Commission is proud to announce that the Auditor-General has concluded the external audit procedures on the 2023/2024 financial statements of the Electoral Commission as well as Party Funding. The outcome of both these external audits is clean audit opinion.
“This feat is achieved for the fourth consecutive time,” the Commission said in a statement on Thursday.
The commission said the clean audit opinions speak to the financial probity as well as the strength of internal controls which remain of the highest standards adding that the adherence to prescripts in the form of the Public Finance Management Act (PFMA) and its corresponding regulations.
Electoral Commission CEO Sy Mamabolo welcomed the clean audit and commended staff for working tirelessly to ensure that accountability, proficiency, and transparency is always at the centre of the organisation’s business practices.
“Throughout the years we have implemented internal controls to manage performance of the organisation. We strive to maintain this standard going forward, even during busy election periods,” said Mamabolo.
He went further to say, “as the Electoral Commission we have not only committed ourselves to delivering reputable elections but have also made it our business to ensure our business practices are of the highest standard through the consistent implementation of internal controls.”
The audit report, together with the Annual Report, will be presented to the seventh iteration of the National Assembly in line with the provisions of the Electoral Commission Act and the PFMA.
Fund members urged to get financial advice on pension fund withdrawals
With the President signing into law the Pension Funds Amendment Act (31 of 2024), National Treasury has urged fund members to seek trustworthy financial advice to consider the implications for withdrawals from the savings component.
“Fund members should also note that administration costs and tax at marginal rates will be deducted from such withdrawals. Members will lose out on all related future growth and the retirement benefit originally intended for those funds,” National Treasury said on Tuesday.
The signing into law of the Pension Funds Amendment Act ushers in the last part of the significant amendments required to implement the two-pot system to commence on 1 September 2024 after proclamation by the President.
The Pension Funds Amendment Act provides for certain amendments to the Pension Funds Act, 1956, the Post and Telecommunications-related Matters Act, 1958, the Transnet Pension Funds Act, 1990 and the Government Employees Pension Law, 1996, which are necessary to enable retirement funds, including public sector funds, to implement the two-pot reform.
READ | President Ramaphosa signs Pension Funds Amendment Bill into law
These changes follow the related amendments to the Income Tax Act, which are contained in the Revenue Laws Amendment Act (12 of 2024).
“The main intention of the two-pot system reform is to improve South Africa’s retirement outcomes for members at retirement through the preservation of a larger portion of the retirement savings.
“At the same time the reform allows some measured access in cases of financial distress without a member having to resign from employment.
“The new two-pot retirement system creates a more sustainable retirement fund system, while increasing flexibility to cater to the differing needs of members. The system will provide a welcomed relief mechanism for people in real crises to access emergency funds without resorting to loan sharks or having to quit their jobs to access their retirement savings, while ensuring a larger portion of those savings are preserved until retirement,” National Treasury said.
Retirement funds and trustees are now in the process of aligning their fund rules with the changes to the acts and should be communicating with fund members about these rule changes and processes to be followed for savings benefit withdrawal claims.
Fund rule amendments still need to be submitted to the Financial Sector Conduct Authority for approval before implementation.
“Most funds are set to implement the new split for contributions to the two new components (i.e. savings component and retirement component) on 1 September 2024, as planned.
“They will also calculate the once-off seeding capital value using the vested component (i.e. retirement savings accumulated before implementation date) on 31 August 2024, that will be available for transfer to the savings component and accessible to members from 1 September 2024.
“However, not all funds will likely be able to process withdrawal requests immediately on 1 September 2024, as the systems to do so and the mechanics to request such withdrawals will still be new or are being installed. Funds that are ready for such withdrawals will also need some time to process requests,” National Treasury said.
DMPR notes withdrawal of TotalEnergies from offshore blocks
The Department of Minerals and Petroleum Resources has expressed confidence that a suitable investor will come on board and “be able to monetise” gas discoveries off the south coast of South Africa.
This after international energy giant, TotalEnergies, announced its withdrawal from offshore Block 11B/12B and 5/6/7.
“The Department of Mineral Resources and Energy (DMRE) notes TotalEnergies’ announcement to exit from offshore blocks 11B/12B and 5/6/7. We are confident that a suitable investor will come on board and be able to monetise the gas discoveries.
“The department remains committed to the exploration of the country’s oil and gas resources and will intensify engagements with key role players to ensure the development and sustainability of the sector,” the department said in a statement.
Furthermore, the DMPR said it was pleased that the company is not totally withdrawing from South Africa.
“Additionally, we are pleased that TotalEnergies is not entirely leaving oil and gas opportunities in South Africa as they still hold exploration rights over Blocks Deep Water Orange Basin and Orange Basin Deep, Outeniqua South, and recent entry in Block 3B/4B east of Deep Water Orange Basin,” the department said.
Transnet forging ahead with reforms
Tuesday, July 30, 2024
Transnet says it is making “considerable progress” in the implementation of reforms in accordance with the Freight Logistics Roadmap and the Guarantee Framework Conditions issued to Transnet by National Treasury.
The reforms include the reform of Transnet’s rail business, corporatisation of the Transnet National Ports Authority (TNPA) and the disposal of the company’s non-core assets.
Transnet Group Chief Executive, Michelle Phillips, said: “These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations. In some cases, these changes entail entry of third parties in the rail and port networks, which is a necessary step to stimulate competition and address long-standing challenges such as underinvestment.”
Rail reform
Transnet said the rail reform process is on track.
This includes what the company calls the “vertical separation of Transnet Freight Rail (TFR) into a Rail Operating Company and an Infrastructure Manager”.
“Since the publication of the draft railway Network Statement in March 2024, Transnet actively participated in a consultation process facilitated by the Interim Rail Economic Regulatory Capacity (IRERC). This was in preparation of the finalisation of the final Network Statement to open train slots for third party train operator access.
“Following extensive consultations to align with key stakeholders, the Interim Infrastructure Manager has made the input to the IRERC, and Transnet looks forward to the publication of the final network statement and proposed tariff methodology to open slots for third party access by 30 September 2024,” Transnet said.
According to Transnet, the Rail Operating Company and Infrastructure Manager operating models, and organisational designs are expected to be finalised in the first quarter of 2025.
Non-core assets and TNPA
The corporatisation of the TNPA is expected to culminate in the establishment of the National Ports Authority, which will be wholly owned by Transnet.
Work is underway to complete the Memorandum of Incorporation and the Registration of the National Ports Authority.
“The reform will enhance TNPA’s regulatory oversight on terminal operators across its port network. The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue, attract increased investments to improve the efficiency and positioning of SA ports to enhance competitive maritime trade and create appropriate partnerships.
“It will also, through its independence, enhance terminal licence oversight and align with international standards and regulations governing port authorities and ensure compliance with South African maritime and port regulations,” Transnet explained.
Furthermore, the company said its disposal of non-core assets is also progressing well.
“The disposals will generate cash and reduce holding costs. The Transnet Board of Directors has approved a plan for the disposal of the non-core assets. Transnet will finalise the full list of non-core assets for disposal in the current financial year,” the entity said.
President Ramaphosa signs Public Procurement Bill into law
President Cyril Ramaphosa has assented into law the Public Procurement Bill, which aims to create a single framework that regulates public procurement, including preferential procurement, by all organs of state, with the necessary efficiency, cost-effectiveness and integrity.
“The President has assented to the Public Procurement Bill which complies with the stipulation in Section 217 of the Constitution that [the] contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective; and that national legislation must prescribe a framework within which a procurement policy must be implemented,” said the Presidency.
As enacted by the President, the Public Procurement Act addresses weaknesses in the procurement of goods and services by organs of state that have in the past enabled various degrees of corruption, including state capture.
The Act also responds to the acknowledgement that legislation regulating procurement by organs of state is fragmented and constrains justified advancement of persons or categories of persons who could provide goods or services.
The Act establishes a single framework that regulates public procurement, including preferential procurement, by all organs of state and promotes the use of technology for efficiency and effectiveness. The law seeks to enhance transparency and integrity, among others, to combat corruption, ensure efficient, effective and economic use of public resources and advance transformation and broadened economic participation.
It foresees that economic development will be stimulated through the procurement of goods that are produced and services that are provided in South Africa, as well as procurement that is developmental in nature.
The Public Procurement Act, which will be administered by the Minister of Finance, applies to departments, constitutional institutions, municipalities, municipal entities, and public entities.
There are also a limited number of clauses which apply to Parliament and provincial legislatures.
The Act applies to all procurement carried out by a procurement institution (including procurement through donor or grant funding) any person who submits a bid or has been awarded a bid and all procurement carried out by any person on behalf of a procuring institution.
Among its wide-ranging provisions, the Act lists persons who may not submit bids including a public office bearer, employees of Parliament or provincial legislatures, and officials or employees of, among others, public entities, constitutional institutions, municipalities and municipal entities.
KZN commits to youth-oriented programmes
The eThekwini Municipality has welcomed KwaZulu-Natal Premier Thami Ntuli’s commitment to youth-orientated initiatives and developmental programmes.
Ntuli, who led the Executive Council in a two-day Youth in Business Summit recently held in Durban, announced that youth-oriented programmes will be a priority throughout the tenure of his administration.
Hosted under the theme “Young people taking charge in leading economic development”, the summit provided a platform for engagement between the government and the youth.
The summit encouraged youth development, entrepreneurship and involvement in the mainstream economy throughout the province.
Speaking at the summit, Ntuli said the summit is a catalyst for change and a platform for dialogue.
The Premier said the Executive Council and provincial government have identified youth unemployment, youth development, and financial backing for youth-owned enterprises as some of the key priorities for the seventh administration.
As part of government’s interventions to fight the scourge of unemployment through the Premier’s Office, the provincial government has created a suite of funding schemes which include the Premier’s Youth Empowerment Fund which has been increased from R60 million to R100 million.
“This programme seeks to afford the youth of this province with an opportunity to interact with strategic business leaders and to also share their views and ideas on how they would want this province of KwaZulu-Natal to aid their initiatives and programmes,” Ntuli said.
eThekwini Municipality Deputy Mayor Zandile Myeni commended the Premier-led initiative.
“When we give business access to young entrepreneurs, we will be ensuring that we transform the economy,” Myeni said.