Malusi Gigaba Archives

21 Nov 2018

Why tourism is the quick fix SA needs

By Janice Roberts

The tourism industry has been hamstrung for a number of years by unfriendly visa requirements, introduced under ex-Home Affairs Minister Malusi Gigaba’s leadership. These requirements negatively impacted the number of tourists entering the country. In particular, the controversial requirement that visitors travelling with children under the age of 18 years provide their unabridged birth certificates...

22 Feb 2018

Is Budget 2018 enough to please Moody’s?

By Janice Roberts

By raising South Africa’s VAT rate from 14% to 15%, the South African government indicated a willingness to take difficult (and unpopular) decisions in order to stabilise the fiscus. Coupled with the recent change in the President, this Budget should be enough to keep Moody’s on hold when they release their South Africa sovereign...

22 Feb 2018

Personal income tax buoyancy has run its course

By Janice Roberts

South Africa’s tax measures have traditionally focused on personal income tax as an important source of revenue as this had always proven to be a particularly buoyant source of revenue. However, over the last years South Africa’s personal income tax collections have continued to underperform.

21 Feb 2018

BUDGET 2018 COMMENT: Slow return to path of fiscal consolidation

By Janice Roberts

By Craig Pheiffer, Chief Investment Strategist; Absa Stockbrokers & Portfolio Management. Bonds rallied and the rand strengthened as minister Gigaba announced a return to the path of fiscal consolidation. The budget deficit of 4.3% of GDP forecast for the 2017/18 fiscal year was left unchanged as expected, but the 3.9% deficit forecast for the next...

14 Feb 2018

Budget 2018: Anticipated VAT shocks - another blow to an already bruised taxpayer

By Janice Roberts

By Hermann Marais, associate, Tax practice at Bowmans. Potential VAT increases have been discussed for several years, despite being politically sensitive. The urgency for an increase in the VAT rate escalated towards the end of 2017 when Finance Minister Malusi Gigaba announced in the Medium Term Budget Policy Statement that there would be a ZAR 50.8...

14 Feb 2018

Budget 2018: Treasury faces biggest challenge yet

By Janice Roberts

The National Treasury has never before had such a big challenge as it does this year in having to plug a seemingly continuously growing funding gap in its Budget vote later this month, from a shrinking pool of resources. It may be left with little choice but to squeeze the trusty ‘golden goose’ even further.

07 Feb 2018

Will the Finance Minister increase the VAT rate?

By Janice Roberts

The question on everyone’s lips ahead of the Budget Review is whether the Minister of Finance will announce an increase in the VAT rate, and if so, what that increase will be?

13 Nov 2017

Treasury confirms resignation of Michael Sachs

By Janice Roberts

National Treasury confirms the resignation of its Deputy Director-General: Budget Office, Michael Sachs. “Mr Sachs has expressed his interest to serve the public sector in a different capacity,” its statement, issued on Monday afternoon, said. “Mr Sachs will not be leaving National Treasury immediately to ensure a proper handover to another senior official and to...

07 Nov 2017

Minister of Finance requests setting up of inquiry into SARS

By Janice Roberts

The Minister of Finance Malusi Gigaba has approached President Jacob Zuma for an urgent establishment of an inquiry into the tax administration and governance of the South African Revenue Service (SARS). The President has acceded to the request. In a statement this afternoon, the Minister said that the Commission will be established soon and its...

31 Oct 2017

Tax increases may not be enough

By Janice Roberts

The possible tax increases hinted at during last week’s Medium Term Budget Policy Statement (MTBPS) are likely to do very little to decrease Treasury’s R50.8 billion revenue shortfall – and may in fact ensure that even less revenue is collected next year.

26 Oct 2017

MTBPS likely to lead to rating downgrades before year end

By Janice Roberts

by Johann Els – Senior Economist at Old Mutual Investment Group. Minister Gigaba’s first Medium-Term Budget Policy Statement missed the mark completely, raising the deficit and debt targets substantially without a plan to bring them back over the medium-term expenditure framework.

26 Oct 2017

MTBPS paints bleak picture

By Janice Roberts

The Medium Term Budget Policy Statement (MTBPS), presented in Parliament by Finance Minister Malusi Gigaba, paints a bleak picture: the expenditure ceiling has been breached, there is no primary surplus and debt and guarantees combined are above 60% of GDP. Not only is the market likely to hate it, but Standard & Poor’s may well downgrade...