Mon May 21 18:49:18 SAST 2012

The Business LIVE Network

BUDGET 2012 - NEWS, VIEWS AND PREVIEWS

Private sector must play its part - Gordhan

Finance Minister Pravin Gordhan has called on the private sector to take up the challenge and become more involved in the economy through the infrastructure build program and by creating jobs.

EDZs one of many initiatives to support growth

Finance Mister Pravin Gordhan said in his Budget speech on Wednesday that economic development zones was only one of many initiatives to support business sector growth.

Savings incentives could revive housing market

Rudi Botha, CEO of SA's largest bond originator BetterBond, says this year's Budget Speech will not only further stimulate housing demand, but will also increase the ability of home seekers to qualify for housing finance.

AA still thinks tolls should be funded by fuel

The Automobile Association (AA) says it is still of the view that the toll issue should be funded from the fuel levy, regardless of these latest concessions from government.

Cosatu rejects Gauteng freeway tolling

Cosatu secretary general Zwelinzima Vavi says the R5.8 billion allocated to the Gauteng Freeway Improvement Project (GFIP) is not good enough.

No fat left in system, says ABSA

After many years of listening to budgets and walking away wondering what all the fuss was about, for the first time this year we have been confronted with the harsh reality that Minister Pravin Gordhan faces.

NAAMSA says budget is disciplined, appropriate

Finance Minister Pravin Gordhan tabled an appropriate and disciplined set of Budget proposals, David Powels, the National Association of Automobile Manufacturers of South Africa (NAAMSA) president said.

Not all infrastructure projects to be built

Not all of the R3.2-trillion of infrastructure projects under consideration would be built, says the National Treasury in its 2012 Budget Review.

Government aims to reduce level of borrowing

The public-sector borrowing requirement is projected to drop to R213.9 billion in 2011/12 from the R241.5 billion projected in the October 2011 Medium Term Budget Policy Statement and R276.4 billion in the February 2011 Budget, the Treasury said on Wednesday.

Social services now 57% of state spending

Spending on social services has risen to 57% of government’s total expenditure at R615.7 billion this year compared with 49% a decade ago, says the National Treasury.

Gauteng tolling to start on April 30 (With Audio)

Tolling on roads included in the controversial Gauteng Freeway Improvement Project will begin on April 30, the National Treasury said on Wednesday.
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Mulder welcomes savings resolutions

The announcement of plans aimed at encouraging the public to save were welcomed by Freedom Front Plus leader Pieter Mulder on Wednesday.

Water boost for Western Cape farmers

Raising the height of the Clanwilliam Dam wall will provide an additional 10 million cubic metres of water a year for downstream farmers, according to budget documents tabled by Finance Minister Pravin Gordhan on Wednesday.

SA 2012 GDP revised to just 2.7%

The 2012 February Budget Review, released on Wednesday, has revised Gross Domestic Product (GDP) growth lower and consumer inflation higher this year relative to the February 2011 Budget Review.

Tax ombud to be established in 2012

Taxpayers will be pleased to know that one of the tax administration measures being introduced this year is the establishment of a dedicated Tax Ombud.
Tax dodgers watch out, SARS is after you

R9.5bn in personal tax cuts for 2012/13 vs R8.1bn in 2011/12

Finance Minister Pravin Gordhan has unveiled personal tax cuts totaling R9.5 billion across all income brackets in the Budget for the 2012-13 financial year.

Retirement tax changes delayed to March 2014 

As flagged by the Treasury in last year’s Budget, major changes to the taxation of retirement contributions are being implemented, but only from March 1, 2014 and not from March this year as was stated in last year’s Budget.

Uncertainty fuelled exchange rate volatility in 2011

Uncertainty in global markets resulted in exchange rate volatility in 2011, the Budget Review said on Wednesday.

Capital gains tax exemptions, rates to rise

In a comprehensive overview of the existing capital gains tax environment, the National Treasury has announced some sweeping amendments to tax-free exemptions, but it has also increased capital gains tax rates for the first time since this form of tax was introduced in South Africa.

R6b needed for NHI over next 3 years (With Audio)

R6 billion will be needed in the 2014/15 fiscal year that was not currently provided for in the three year Medium Term Expenditure Framework (MTEF) to fund National Health Insurance (NHI), says National Treasury.

Fees on many financial products too high: Gordhan

Fees for many products in the financial sector remain too high, while a revised financial sector charter code will be gazetted shortly, said Finance Minister Pravin Gordhan on Wednesday.

Expenditure by SA government over R1-trillion for the first time ever

Consolidated government expenditure will grow by 8.8% to R1.06-trillion in the 2012/13 fiscal year – the first time state spending moved above this budget milestone.
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Gauteng tolling given the green light (With Audio)

The SA National Roads Agency (Sanral) will have its debt increased to R59 billion to ensure its sustainability and it will get enforcement powers for collecting tolls.
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Scopa wants more value from departments

Getting value for money from government departments remains a challenge that must be overcome, according to Themba Godi, chairperson of the Standing Committee on Public Accounts, the public accounts watchdog.

Carbon tax proposed effective from 2013/14  

Following public consultation, the National Treasury has revised its concept design for a carbon tax with a draft policy paper due for publication and comment during 2012 and implementation planned for 2013/14.

SA will achieve primary balance surplus in 2014/15

The Treasury on Wednesday unveiled a new format for the consolidated government account that enables one to easily establish the primary balance which will be in surplus of 0.3% of gross domestic product (GDP) in 2014/15 from a deficit of 1.9% in 2012/13.

Youth wage subsidy written out of Budget

Absolutely no mention was made of the R5 billion youth wage subsidy in Finance Minister Pravin Gordhan’s 2012 Budget Vote Speech.

Bad news for beer and spirit drinkers

Bad news for drinkers, especially beer and spirit lovers! So-called "sin taxes" on alcohol are going up by between 6% and 20%, almost enough to drive one to teetotalism.

NHI discussion paper due by end of April (With Audio)

National Health Insurance will be phased in over a 14-year period beginning in 2012/13, the National Treasury said on Wednesday.

REACTIONS

Pravin's 3rd budget focuses on future

As was the case last year, many of the tax elements of Finance Minister Pravin Gordhan's third Budget focus on the future with 2012 laying the foundation for several major changes to come.

Budget "a return to sanity"

Finance Minister Pravin Gordhan's budget vote to parliament has been described as "a return to sanity" by the Cape Chamber of Commerce & Industry.

NAAMSA says budget is disciplined, appropriate

Finance Minister Pravin Gordhan tabled an appropriate and disciplined set of Budget proposals, David Powels, the National Association of Automobile Manufacturers of South Africa (NAAMSA) president said.

Budget reaction from steps of Parliament

Reaction abounded outside Parliament after the delivery of the 2012 Budget Vote Speech by Finance Minister Pravin Gordhan.

Budget is rand positive: BarclaysCapital

Barclays Capital regards this year's budget as broadly rand positive from a capital flow and sound macroeconomic policy perspective.

Budget positive for housing, say industry players

Players in the housing and property industry have hailed Finance Minister Pravin Gordhan's Budget as positive for the property industry.

A very good budget in tough times: Schussler

Finance Minister Pravin Gordhan presented "a very good budget in tough times," economist Mike Schussler says.

Poll 

The general fuel levy is going up by 20 cents from April 4 and the Road Accident Fund levy by 8 cents, while toll roads are coming at 30c/km on April 30. Is it too much?

snapshots

SNAPSHOTS

Reactions of leading economists to the 2012 Budget Speech.

Poll 

The Finance Minister wants the private sector to "play its part" in growing the economy. Is he correct?

OPINION

Toys for rich boys get more expensive

While a Warren Buffet-type wealth tax was not mentioned in the Budget, the Budget is looking at stealthier ways to snag the rich.

SA Budget or corruption Budget?

The Budget that is presented this week must be seen from the perspective of the implicit contract between the state and its subjects. The state is the creation of people who agree that it is better for all if some matters of public concern are dealt with impartially by the state.
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Toast your last pre-budget dop and smile

It is nearly three years since Jacob Zuma ousted Thabo Mbeki as president and Pravin Gordhan (PG) took over as minister of finance from Trevor Manuel.

Get ready for 'jeopardy' assessments

South Africans need to prepare for rather invasive "jeopardy assessments" in their immediate taxpaying future.

MULTIMEDIA

Reporters Roundtable - The Budget

BusinessLIVE deputy editor Evan Pickworth is joined by economics writer Helmo Preuss in this edition of the Reporters Roundtable to unpack next week’s Budget. Recorded by Evan Pickworth. Edited by Michael Bratt.

SA tax policy needs to be defined (Video)

Tax executive from Edward Nathan Sonnenbergs law firm Ernie Lai King speaks with BusinessLIVE about the upcoming budget and gives his opinion on what we can expect from it. He also emphasised that he wants to see South Africa's tax policy be better defined and explained why. Interview, recording and editing by Michael Bratt.