Latest news with #EnochGondongwana
Eyewitness News
7 days ago
- Business
- Eyewitness News
WC Finance MEC hopes additional funds to education, health will help plug gaps
CAPE TOWN - Western Cape Finance MEC Deidre Baartman says she hopes the additional funds allocated to provinces for education and health will help plug the gaps at both departments. During his budget speech two weeks ago, Finance Minister Enoch Gondongwana announced additional funds for provinces to retain teachers, healthcare professionals and hire new staff. Earlier this year, more than 2,400 teaching posts were cut in the Western Cape because of a budget shortfall of R3.8 billion. Baartman re-tabled the Western Cape's 2025/26 budget on Tuesday, following the withdrawal of the national budget in March. She said education and health would receive R100 billion each from the province's R269 billion budget over the next three years. "It should be noted that Minister Godongwana announced additional funding for education and health in provinces. This funding will flow to provinces later in the year and does not form part of this budget. Once received, we will allocate the funding to the respective departments accordingly."
eNCA
22-05-2025
- Business
- eNCA
We need innovative ways to stimulate economic growth
PIETERMARIZBURG - Finance minister Enoch Gondongwana has finally tabled his budget, at the third time of asking. WATCH | Budget 3.0 | Alarm over rising debt costs A proposed VAT hike forced a delay, largely due to political pushback that rejected the hike. It remains at 15 percent, but the fuel levy goes up in June. The Portfolio Committee on Finance is worried about budget cuts that could affect education, health and bulk infrastructure. Mervyn Abrahams from the Economic Justice and Dignity Group spoke to eNCA.
IOL News
22-05-2025
- Automotive
- IOL News
Fuel levy hike to hit poor households the most
The General Fuel Tax levy, according to Finance Minister Enoch Gondongwana, is the sole new tax proposal for the 2025/26 fiscal year Image: REUTERS/Ian Hodgson The Automobile Association (AA) has raised concern over Minister of Finance Enoch Gondongwana'a announcement of the General Fuel Levy (GFL) increase. Presenting his Budget speech on Wednesday, Gondongwana proposed an increase of 16 cents per litre for petrol and 15 cents per litre for diesel, which will come into effect on June 4. The Minister described this adjustment—the first in three years—as the sole new tax proposal for the 2025/26 fiscal year, citing inflationary pressures as the reason for the hike. Eleanor Mavimbela, the AA Public Affairs spokesperson, while acknowledging the government's fiscal constraints, warned that the increase will have immediate and far-reaching consequences for consumers and the economy. "This levy adjustment comes at a time when South Africans are already contending with high food prices, elevated interest rates, increased electricity tariffs and persistently high unemployment. Fuel is a critical input cost across all sectors of the economy; any increase inevitably drives up transport and operational costs, further intensifying inflation. Lower-income households, which spend a greater share of their income on transport, will be disproportionately affected by this rise," said said. Escalating Tax Burden on Fuel With the new adjustments in June, the combined cost of the GFL and the Road Accident Fund (RAF) Levy will exceed R6.00 per litre in some areas—accounting for more than 30% of the total pump price before adding the base fuel cost, distribution margins, and retail mark-ups. "While the AA recognises the need to address fiscal pressures, continuously turning to fuel levies to fill budget gaps is unsustainable—especially in the absence of transparency on how these funds are allocated and used," said Mavimbela. Call for Reform and Transparency In light of this development, the AA renewed its call for a comprehensive and transparent review of South Africa's fuel pricing model. This should include: A forensic audit of revenue generated from the GFL and RAF Levy, including its allocation and expenditure Full transparency on the fuel price-setting formula published by the Department of Mineral Resources and Energy (DMRE) Engagement with civil society, labour, and the transport sector to identify fair and sustainable revenue models Exploration of alternative funding mechanisms that reduce reliance on fuel-based taxation. A Broader Conversation is Needed Although the latest increase may appear modest in isolation, it forms part of a broader trend where motorists and transport-reliant industries bear the brunt of fiscal policy changes. South Africa must have a broader conversation about funding infrastructure, road safety, and public transport in a way that doesn't unduly burden citizens, she said. The AA stands ready to engage with the government and all stakeholders to develop sustainable, transparent, and equitable solutions that support both economic growth and the citizens who drive it, said Mavimbela. SUNDAY TRIBUNE
The Citizen
27-04-2025
- Business
- The Citizen
Western Cape High Court orders scrapping of the 0.5% VAT hike
Despite Enoch Gondongwana's recent announced that the VAT hike has been reversed, the court ruled in favour of the DA and EFF. National Treasury has been dealt another blow after the Western Cape High Court ordered the scrapping of the 0.5% VAT increase until Parliament passes legislation making Finance Minister Enoch Godongwana's decision to reverse the VAT hike an act of Parliament. The court made the order on Sunday in the DA and EFF's court challenge to have the VAT rate adjustment set aside. Order Despite Gondongwana's recent announcement that the VAT hike has been reversed, the court ruled in favour of the DA and EFF. 'The Minister of Finance's announcement on 12 March 2025 made under section 7(4) of the Value-Added Tax Act 89 of 1991, whereby the Value-Added Tax (VAT) rate was adjusted as follows 'the first 0.5 percentage point increase in the VAT rate will take effect on 1 May 2025 and the second 0.5 percentage point increase will take effect on 1 April 2026', is suspended pending the passing of legislation regulating the VAT rate or the final determination of Part B whichever occurs first.' In the ruling, the court also overturned the resolution of the National Assembly (NA) adopting the report of the Joint Standing Committee on Finance on the Fiscal Framework and Revenue proposals adopted earlier this month. 'The resolutions of the National Assembly and the National Council of Provinces, adopted on 2 April 2025, to accept the report of the Standing Committee on Finance and the Select Committee on Finance, on the 2025 Fiscal Framework, are set aside.' ALSO READ: DA files supplementary affidavit to block the proposed VAT hike Court costs National Assembly Speaker Thoko Didiza and National Council of Provinces Chairperson Refilwe Mtshweni-Tsipane have also been ordered to pay 50% of the legal costs, including costs to two senior counsel. The court's order is subject to Part B of the DA's application, which seeks to have the VAT Act declared unconstitutional. DA affidavits During the weekend, the DA and EFF filed supplementary papers in the multilayered court case. In the affidavit, the DA also argued that, even if the High Court sets aside the fiscal framework, which Parliament now agrees it should, it won't prevent the VAT increase from kicking in next week. 'The SA Revenue Service's apparent view to the contrary is plainly wrong. Its advice to vendors – which contradicts the minister's own position – creates further legal confusion,' the DA said in the affidavit. ALSO READ: Treasury reverses proposed VAT hike, will remain at 15% EFF affidavit In their court filing, the EFF expressed 'deep concerns' about the conduct of the Speaker of the National Assembly and parliamentary secretaries, accusing them of entangling Parliament in partisan politics. The EFF said that South Africa currently has no lawful budget, arguing that the fiscal framework and revenue proposals were adopted through processes that violate the Constitution and the Money Bills Amendment Procedure and Related Matters Act. 'The only legitimate and practical way forward is a full reset of the 2025 budget process to re-establish constitutional compliance and fiscal legitimacy,' the EFF asserted. Vat reversed The High Court's order comes after Gondongwana's decision to withdraw the VAT increase and also offer the DA an out-of-court settlement in its application. The VAT rate was scheduled to rise to 15.5% on 1 May, but growing political and public pressure placed Finance Minister Enoch Godongwana under strain to abandon the proposed increase. Treasury said it will 'consider' other proposals as potential amendments in upcoming budgets. ALSO READ: EFF calls for resignation of Godongwana amid VAT fiasco
