Kia Picanto now more affordable, but can it claw back sales ground lost to Grand i10, Swift?
The new Kia Picanto 1.0 LS brings the entry price of the range down by R24,000.
Once a prime contender in the budget hatch space, the Kia Picanto has seen flagging sales in the past few years as prices gradually rose beyond the level of its key rivals.
Consider that in the past three months Kia sold an average of 161 Picantos per month, while the Hyundai Grand i10 averaged 1,373 and the Suzuki Swift 1,834.
Until now, the least expensive Picanto, the LX, cost R260,995, considerably more than the R224,900 starting price of both the Grand i10 and Swift.
Now Kia South Africa has put its baby hatch back into contention with the launch of the 1.0 LS, which costs R236,995 in manual form and R256,995 as an auto, according to Duoporta and Cars.co.za.
That makes the new, and quietly announced, base model a cool R24,000 less expensive than the LX.
But it gets even better, with the Kia SA website now listing further discounts on some of its Picanto models, slashing the price of the new LS to R229,995 and the LX to R245,995.
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Daily Maverick
2 hours ago
- Daily Maverick
Drama, deals, disregard – how another 12,000 Nelson Mandela Bay ratepayers were denied a capital budget
In this second report in our series on wards in Nelson Mandela Bay receiving a zero capital budget, Ward 39 is a large residential area that includes suburbs and the peri-urban area of Theescombe. Some of its residents pay the highest rates in Nelson Mandela Bay, and yet its capital budget was reduced from R1.5m to nothing. When Nelson Mandela Bay Executive Mayor Babalwa Lobishe joined the residents of Ward 39 at their integrated development plan meeting, she presented them with the 2024 budget instead of the 2025/6 budget. In that 2024 budget, the ward had a capital budget of R1.5-million – but ward councillor Margaret de Andrade and her ward committee soon pointed out to Lobishe that she was presenting the wrong budget. 'I told her there is a zero under capital budget in the new budget,' De Andrade said. 'We received nothing but R100,000 for a humanitarian fund that is almost impossible to access.' The R1.5-millon referred to by Lobishe had, in any event, already been spent on resurfacing part of a crucial road, adding traffic calming measures and fixing a busy sidewalk. This is the second ward in the metro, with mostly ratepaying residents, whose budget has been cut to zero. Ward 8, covering Lorraine, a densely populated area, also had its capital budget reduced to zero. The Nelson Mandela Bay council was to meet for the third time on Thursday to try to pass the budget. But according to a letter seen by Daily Maverick, even the National Treasury has become worried about the numbers – the metro's collection rate is at 73% and the budget is based on a collection rate of 76%. This means that there is a shortfall of R1.3-billion. Grants totalling R900-million from the national government that could have been used for capital projects were returned unspent in the past two financial years. For the current financial year, the metro has only spent 38% of its R1.9-billion capital expenditure budget. While the four wards that received zero capital budgets are wards with Democratic Alliance councillors, De Andrade, who sits on the budget and treasury subcommittee, said many ANC councillors were unhappy with the budgets for their wards. 'Hugely disrespectful' De Andrade, who has been a councillor for 19 years, said she had not had to deal with a zero capital budget before. Water leaks, sewage spills and street lights can still, in theory, be fixed under operational budgets for the metro. 'I want a million rand,' she said. 'We have a track record of looking after a capital budget of a million rand. You can't give me zero.' She said they had asked for specific evidence for this decision. She said over the medium term, the situation didn't look much better as the ward would receive only R500,000 for the next financial year. 'That is just stupid. I can tar maybe 500 metres with it.' Below are the projects the ward presented to the municipality to be taken into account for the Integrated Development Plan and the budget: Walker Drive needs to be resurfaced as it is riddled with potholes; Riverstone Road needs an upgrade and drainage; there needs to be a taxi rank constructed for Kragga Kamma; the railing of the low water bridge in the Kabega Road dip should be fixed. Parts of the ward are in urgent need of high mast lights. A substation needs fencing. Kragga Kamma Road, which carries around 5,000 vehicles a day, needs pedestrian walkways and cycle tracks to cut down on accidents. Walker Drive needs a stormwater upgrade, and several gravel roads in the peri-urban areas need tarring. Trees growing into powerlines have to be cut and old electrical infrastructure must be replaced. The ward also has illegal cables running over busy Kragga Kamma Road that often set the area on fire. De Andrade also asked for this to be dealt with. 'I think our ratepayers accept that 80% of their rates go to other areas, but it is hugely disrespectful to give us no capital budget,' De Andrade said. She said that after receiving advice from a city official, she managed to get R500,000 in unspent money to cut trees before the end of the financial year. She said that as she had her meetings about the zero capital budget, acting city manager Ted Pillay had told her to agree to this budget so that 'they can get it through' as they needed the new electricity tariffs to be approved — they would then adjust the budget in August. The electricity department projects a loss of R1.3-billion for the coming year and needs rates to ensure that it doesn't default on its payments to Eskom. In the current financial year, the municipality has already spent R600-million more on purchasing electricity than it received from sales to the public. 'But I said no,' De Andrade said. 'Councillors are delaying the approval of the budget because we want to see the capital budgets in print before we vote.' Municipality's response Municipal director of communications Sithembiso Soyaya said a mistake had been made in presenting the wrong budget to Ward 39 residents. 'During engagements in Ward 39, it was brought to the municipality's attention that the previous year's budget figures may have been presented during an initial consultation session. This matter is currently under internal review, within the relevant framework, and corrective measures will be implemented to ensure such administrative oversights do not recur. 'The concern has been noted and considered during the revision of the draft budget, and the updated, corrected figures should be reflected in the final 2025/26 budget being presented to Council on Thursday. 'The municipality remains committed to ensuring that communities receive accurate, up-to-date information in all budget consultation processes. 'On the response by the city manager, we wish to clarify the context and emphasise that any amendment to the municipal budget must follow a legally compliant process, as provided for in Section 28 of the Municipal Finance Management Act, which allows for a formal adjustment budget to be adopted by council under defined conditions. 'No informal or arbitrary changes can be made outside this regulated process. The municipality upholds these legislative requirements and remains committed to full compliance with the law.
IOL News
11 hours ago
- IOL News
eThekwini city manager defends decisions amid court rulings and financial scrutiny
eThekwini Head and City Manager Musa Mbhele and Malusi Mhlongo, the eThekwini Legal and Compliance Services head. Image: Doctor Ngcobo / Independent Newspapers eThekwini Municipality City Manager Musa Mbhele said he has saved the municipality millions of rand by not signing off on documents while wearing a blindfold. Mbhele has come under public scrutiny following three court cases that cost the municipality millions, involving Daily Double Trading 479 CC, Solbeth Security and Risk Management Services, and Bless Joe Trading CC. The Constitutional Court dismissed the municipality's attempt to overturn a prior ruling, which held it liable for R30 million that is owed to a service provider, Daily Double Trading 479 CC, stemming from 2013. Daily Double Trading challenged the municipality's decision to cancel its contracts, and an out-of-court settlement agreement was reached between the parties. However, the city argued that the lawyer who was involved in the agreement had not been authorised to make such a deal. The city challenged the settlement agreement in court, but the courts have ruled against it, and the municipality's latest bid to appeal was dismissed this week by the Constitutional Court, which found it had no reasonable prospects of success. In another case, businessman Siyabonga Xulu is demanding payment of over R413 million due to his company, Solbeth Security and Risk Management Services. Xulu alleged that the municipality refused to pay for the critical security services his company provided to senior officials, including former city manager Sipho Nzuza, dating back to 2019. Lastly, the municipality hired tents and ablution facilities from Bless Joe Trading CC in April 2019 to provide temporary emergency accommodation for flood victims in Tehuis, Umlazi. In court papers, Bless Joe Trading CC provided a marquee, flooring, eight public toilets, and 50 chairs at R190,000 per day for 14 days. In March 2020, the municipality cancelled the contract, stating that they would provide alternative shelter for the flood victims, but Bless Joe Trading CC argued that the marques were not evacuated. In court papers, the company owner alleged that when he went to pick up his marquee and toilets, he was told by the occupants that they would not move because they had not found alternative accommodation. He, therefore, billed the city even though the contract expired, claiming R73 million. Malusi Mhlongo, the Legal and Compliance Services head, and Mbhele addressed key issues affecting the city administration and recent legal matters. Mhlongo said there has been criticism about the conduct of the legal strategy of cases, most of the time directed at the city manager. 'Any decision that the city manager takes, he takes it on my concurrence on the basis of my advice. He relies on me for legal matters,' Mhlongo explained. He said they respected the court's decision and that payment of legal costs to legal practices does not constitute wasteful expenditure because they paid for the service they received. He said that when the City Integrity and Investigations Unit (CIIU) recommended that two contracts be terminated because they found misconduct at Daily Double Trading 479CC, the company then sued the city for R44 million. 'We are paying R30 million and interest to a service provider for no services received, and that is what the city manager is trying to resist. We are paying because it was authorised by a person who was not properly authorised to give that instruction. Nobody had the authority to reach a settlement that was over R5 million without going to council. This was handled by former city manager Sipho Nzuza. The judge ruled on the matter,' Mhlongo said. He said the matter with Bless Joe Trading CC went through the court process, and they were now abiding by the court ruling to pay based on a market-related amount for a year. 'If the market-related value is between R5,000 and R20,000 per day, it will be a saving. If we are unable to agree on what constitutes a market-related amount, we can argue the amount in court,' he said. Mhlongo said the Solbeth matter had a long history preceding Mbhele's tenure in office. 'The service provider indicated that he would not be able to share what he was doing because it was top secret and involved intelligence work. Our hands are tied because we cannot pay for something we do not know about. We are waiting for a court date over the matter,' Mhlongo said. Mbhele said the municipality had won many complex legal battles under Mhlongo's supervision that were not published in the media. "We protected and defended the ratepayers, right up to the Constitutional Court. The city is in a far better position than it would have been if we just signed an agreement blindfolded," he said. [email protected]
The Citizen
11 hours ago
- The Citizen
Here is how to navigate tax as a sole proprietor
The tax season begins on 7 July and runs until 20 October. Here is how to navigate tax as a sole proprietor. Picture: iStock With tax season fast approaching, it is essential for taxpayers, especially sole proprietors, to navigate the season with ease. Running your own business as a sole proprietor in South Africa is one of the quickest and simplest ways to become your own boss. No complex registrations, no corporate red tape – just you, your business and full control over decision-making and profits. Unlike registered companies, sole proprietors are personally liable for all tax obligations. That means your business income is taxed as part of your personal income, and you will need to submit the right forms, keep clear financial records and fully understand which expenses you can, and cannot, deduct to reduce your tax burden. 'A well-managed financial system is critical for the growth and success of any small business,' said Wandile Mnguni, Head of Transactional Banking Products and Payments at FNB Commercial. ALSO READ: Almost time again for tax season: Here's when you will be auto-assessed Here are tips to navigate taxes with ease: 1. Register for tax and submit the right forms Mnguni said every sole proprietor must be registered with the South African Revenue Services (Sars) for income tax, and also needs to register as a provisional taxpayer. This means you must submit two IRP6 returns during the tax year (to estimate and pay tax in advance). At the end of the tax year, you will submit an ITR12 (your annual income tax return) to declare all earnings and expenses in your personal and business capacities. Where your business has made taxable (VATable) supplies exceeding R1 million in any consecutive 12-month period or where you reasonably expect to exceed this threshold in the next 12 months, VAT registration is mandatory. If your taxable (VATable) supplies are above R50,000, you can choose to voluntarily register for VAT. 'Being registered for VAT allows you to claim VAT on business expenses. Just remember this adds a significant administrative burden to your operations because you need to work out your VAT every month or two months, depending on the VAT category.' 2. Understand what you can and cannot deduct Mnguni advises that to minimise your tax liability, you should take advantage of allowable business deductions. While it is important to know the finer details of what can and cannot be deducted, generally, as a sole proprietor, you can deduct the following, provided you have adequate supporting documentation: Business-related rent, office supplies, advertising and salaries Travel and vehicle costs (but only for business-related travel, with a proper logbook) Home office expenses if you use a dedicated space for business Internet and phone bills, but only the portion used for business ALSO READ: Looming tax deadline and glitches cause frustration 3. If you have employees, you must deduct their tax 'As a sole proprietor registered with Sars, you can take on employees as your business grows. If you hire employees, your monthly tax obligations increase. 'You will need to register for Pay-As-You-Earn (PAYE) and deduct tax from salaries every month to pay over to SARS via an EMP201 return. You will also have to contribute to the Unemployment Insurance Fund (UIF) on behalf of each employee and register for the Skills Development Levy (SDL) if your payroll exceeds R500 000 per year.' Failing to comply with these obligations can result in severe penalties from SARS; therefore, ensure you are compliant from the outset. 4. Be smart to reduce your tax bill legally He added that, in addition to the amounts you can deduct from your taxable income for ongoing operational expenses, there are also other allowable ways to reduce taxable income and pay less tax: Contribute to a retirement annuity. This allows you to deduct up to 27.5% of your total taxable income, reducing your annual liability. Donate to qualifying public benefit organisations. Sars allows deductions for donations to registered public benefit organisations (with a Section 18A certificate). 5. Keep good records 'Sars requires businesses to keep records of all income and expenses for at least five years. Store invoices, receipts and tax documents securely to ensure compliance and simplify audits. 'Proper record-keeping also helps when claiming deductions or defending yourself in the event of a SARS audit.' 6. Consult a professional He recommends seeking professional tax advice from a registered tax practitioner to optimise deductions and ensure full compliance with Sars regulations. 'Having an expert in your corner ensures your business remains tax-efficient while avoiding unnecessary penalties.' NOW READ: Here is how much Sars boss and others in the government earn
