Latest news with #Ntshavheni
Eyewitness News
2 days ago
- Business
- Eyewitness News
Treasury defends fuel levy increase
CAPE TOWN - The Treasury has defended an increase in the fuel levy, saying if it doesn't raise it in line with inflation, it would become worthless over time. The fuel levy has been left unchanged for three years to mitigate the impact of high oil prices at the time it was frozen. The Economic Freedom Fighters (EFF) is going to court next week to challenge the legality of imposing an increase as part of the national budget, saying that the finance minister had failed to issue a government notice to this effect, nor had he introduced a bill in Parliament. The price of petrol will increase by at least 16 cents per litre on Wednesday. ALSO READ: • Ntshavheni says EFF free to challenge national budget in court • EFF accuses finmin of 'undermining' Parly in court papers seeking to stop fuel levy hike • MPs say impact of fuel levy increase will be 'far worse' than VAT hike • EFF accuses Treasury of replacing VAT increase with fuel levy hike • Automobile Association slams new fuel levy hike The Treasury said that increasing the value-added tax (VAT) rate could not be equated with raising the fuel levy. Responding to public submissions on the budget in Parliament on Friday, Treasury's head of tax policy, Chris Axelson, said that the fuel levy was the country's fourth-largest revenue source, contributing about five percent to total tax revenue. "This is a specific tax, a cents per litre, so these kinds of specific tax, which is the same as excise duties, they need to be adjusted by inflation, otherwise the real value of that tax will go down over time." Axelson said that by not adjusting the fuel levy, Treasury would lose about R3.5 billion in revenue. "The vast majority of the tax revenue increase is all on the personal income tax side. Around R16.7 billion of the R18 billion in increases is all on personal income tax." While the finance minister is empowered through the Customs and Excise Act to implement an interim fuel levy adjustment by a notice in the gazette, Parliament can intervene to change the duration before it's formalised in the taxation act.
The South African
2 days ago
- Business
- The South African
Cabinet approves bill to limit employment of foreign nationals
The South African Cabinet has approved the tabling of a new bill in Parliament aimed at limiting the employment of foreign nationals, as part of broader efforts to address rising unemployment among citizens. According to Eyewitness News , Cabinet also approved the National Labour Migration Policy White Paper. The policy sets quotas on how many documented foreign nationals businesses can hire in sectors like agriculture, hospitality, tourism, and construction. Minister in the Presidency Khumbudzo Ntshavheni announced the decisions during a briefing at Parliament on Thursday 29 May. She said the policy aims to balance employment across sectors and address public concerns about job opportunities. Ntshavheni said the migration policy works alongside other government measures. These include limiting business visas for foreign nationals in certain sectors and changing the National Small Enterprise Act. These changes aim to prevent foreign nationals from establishing small, medium and micro enterprises in some areas of the economy. Cabinet also approved the tabling of the Employment Services Amendment Bill. The bill aims to create a legal framework to regulate the employment of foreign nationals. The bill would give the employment minister the power to set quotas. It would also tighten controls on labour brokers to stop the exploitation of undocumented workers. In a further directive, Cabinet instructed the Minister of Employment and Labour to expedite consultations to define what constitutes scarce and critical skills in the country. This process will help build local skills and create more job opportunities for South Africans in key areas. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Yahoo
2 days ago
- Business
- Yahoo
South Africa Proposes 10-Year Purchase Deal For U.S. LNG
South Africa has proposed to buy liquefied natural gas (LNG) from the United States over a 10-year period as the country looks to secure a trade deal with the Trump administration, a ministerial statement by the South African government has revealed. South Africa plans to import 75 to 100 million cubic metres of LNG per year from the U.S., the world's top LNG exporter. According to Khumbudzo Ntshavheni, South Africa's Minister in the Presidency, the deal would 'unlock approximately $900 million to $1.2 billion in trade per annum and $9 billion – $12 billion for 10 years based on applicable price.' According to Ntshavheni, U.S. LNG will not replace South Africa's current supplies but rather complement them. Ntshavheni, South Africa's cabinet spokesperson, said her country would also explore areas of cooperation with the U.S. in various technologies, including fracking, to help unlock the country's gas sector. South Africa's Karoo region holds significant gas reserves, however, the country has a moratorium on shale gas exploration over environmental grounds. The proposed trade package also includes a quota of 40,000 vehicles per year to be exported duty-free from South Africa; duty-free supplies of automotive components sourced from South Africa; 385 million kilograms of duty-free steel per year and 132 million kg of duty-free aluminium per year. South Africa's President Cyril Ramaphosa is credited with proposing the LNG deal during his visit to the White House a week ago, when U.S. President Donald Trump blamed him for 'genocide' against white farmers and controversial government policies, such as black economic empowerment and land reforms. Ramaphosa had hoped to use the meeting to mend fences with the Trump administration after Trump cancelled aid to South Africa, accusing the government of committing 'egregious actions.' South Africa-born billionaire and a Trump super-ally, Elon Musk, has condemned the South African leadership for supporting 'openly racist policies.'Musk is considered to be a big reason behind the animosity towards South Africa by the Trump administration, where white South Africans disproportionately control most of the country's land and wealth despite constituting just 7% of the population. Back in March, Marco Rubio, U.S. secretary of state, declared South Africa's ambassador to the U.S., Ebrahim Rasool, persona non grata and expelled him from the country. The administration has criticised South Africa's genocide court case against Israel. South Africa currently imports most of its gas from Mozambique via pipeline, with Mozambique's $20 billion natural gas and LNG project facing repeated delays. The project was halted in 2021 due to violence in the Cabo Delgado region, specifically an attack by Islamic State-linked militants. TotalEnergies (NYSE:TTE) is currently seeking approval from the Mozambican government to lift a force majeure declaration on the project, and hopes to start production by 2029. Total is the project's main operator with a 26.5% stake, followed by Japan's Mitsui & Co with 20%, while Mozambique's state-owned ENH owns a 15% stake. Despite the violence, the project is viewed as crucial for the region's economy and Mozambique's economy, with the Southern African country projected to earn US$23 billion from the Coral Norte project over three decades. The LNG plant will liquefy 13.12 million metric tons of natural gas per year (tpy). Whereas 18 African countries produce some natural gas, Algeria, Egypt, and Nigeria account for nearly 90% of all gas produced on the continent. Nigeria has the continent's largest gas reserves at 206.5 trillion cubic feet. The oil and gas sector in Africa's most populous country is responsible for 95% of the country's foreign exchange earnings and 20% of GDP. Source: LNG Industry Currently, Africa has several big LNG projects in progress or awaiting FID (Final Investment Decision). These include Rovuma LNG, Coral North FLNG, Mozambique LNG, and Tanzania LNG. These four projects will be instrumental in ramping up the continent's LNG export capacity over the next decade. The Coral South FLNG is a floating liquefied natural gas (FLNG) facility located offshore Mozambique, specifically in the southern part of Area 4 of the Rovuma Basin. It is designed to process 450 billion cubic meters of natural gas from the Coral reservoir, liquefying 3.4 million metric tons annually for export. The facility is the first FLNG deployed in deep waters on the African continent. Meanwhile, Rovuma LNG is a 12-train project with a total capacity of 18 million tpy; Mozambique LNG has a total export capacity of 43 million tpy while Tanzania LNG will provide 10 million tpy worth of capacity. By Alex Kimani for More Top Reads From this article on
The South African
3 days ago
- Politics
- The South African
South Africa marks one year of GNU
Minister in the Presidency, Khumbudzo Ntshavheni, announced that South Africa is commemorating one year since the National and Provincial Elections in 2024, which resulted in no political party winning an outright majority. 'The period created much uncertainty for South Africa and her people. Today, as the Government of National Unity (GNU), we are proud that we were able to form a government within 14 days, an outstanding achievement given the period taken by some first world countries to form a government in similar situations,' the Minister said on Thursday. Briefing the media following the Cabinet meeting on Wednesday, Ntshavheni outlined the outcomes of the gathering and stated that this milestone represents a renewed commitment to stability, collaboration, and inclusive governance. Ntshavheni emphasised that this historic partnership, which includes 10 political parties, showcases the importance of prioritising the needs of South Africa and its people, by placing the nation first. 'Through constructive dialogue and compromise, the parties have worked together to address pressing issues, fostering a sense of unity and shared purpose, despite our different ideological outlook.' Unprecedented in the history of the country's democracy Announcing his new Cabinet last year, President Cyril Ramaphosa said the establishment of the GNU in its current form was unprecedented in the history of the country's democracy. The President said: 'We have had to consider how to form the new government in a manner that advances the national interest, that gives due consideration to the outcome of the election and that makes use of the respective capabilities within each of the parties.' The President added that all the political parties who were members of the GNU had committed to respecting the Constitution, promoting accountable and transparent governance, evidence-based policy and decision-making, as well as the professionalisation of the public service, integrity and good governance. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
TimesLIVE
3 days ago
- Business
- TimesLIVE
No timelines set for trade deals with US, says Ntshavheni
The government has put no timelines to its discussions on bilateral trade agreements with the US. Minister in the Presidency Khumbudzo Ntshavheni said on Thursday there can be no deadlines attached to any clinched deals as agreements will be staggered. 'There is a basket of offerings that have been tabled through the department of trade, industry and competition, working with the department of mineral resources & energy, department of agriculture, and other departments.' According to the minister, the various deals will be signed as they are finalised. 'There are many discussions taking place, for example on poultry, pork and citrus. If we close a deal on pork tomorrow, because we are a net importer of pork, why should it wait for a discussion on energy and gas that may only be closed in two months' time? 'So as the deals and areas of agreements are reached, they will be implemented. The US remains one of our strategic partners so we will want to work and conclude those as speedily as possible.' President Cyril Ramaphosa led a delegation, which included Ntshavheni, to the White House to reset and strengthen bilateral relations between the two countries after allegations of persecution of white South Africans by US President Donald Trump's administration. 'The issue of relations between South Africa and the US was an issue that occupied the minds of many people in our country. Many were concerned about the deteriorating relationship between our two countries, having recognised the important roles we play in each other's economies, apart from various political and diplomatic relations,' said Ramaphosa earlier this week. Ntshavheni reported the two countries will discuss not only tariffs but also non-tariff barriers. 'We have proposed that we need a quarter of 40,000 vehicles manufactured in South Africa to enter the US in the current no tariff arrangement. There was a discussion about critical minerals, which is in everybody's interest, but you'll recall that in the previous cabinet meeting we approved a critical minerals strategy driven from the fact that we are no longer exporters of sand and rock. 'We are going to beneficiate at source or nearest to source and that discussion must be framed within the provision of our critical minerals strategy. There are licensing requirements to mine in South Africa and we have indicated that if they want to mine they must partner with those who already hold exploration or mining licences.' She said cabinet welcomed the 'reset of strategic relationships' between Pretoria and Washington, adding they look forward to the US' continued participation. 'The South African and US teams will finalise the details of trade deals. It is safe to emphasise the objectives South Africa had set have been met,' said Ntshavheni. Trade, industry and competition minister Parks Tau previously told TimesLIVE Premium South Africa submitted to the US government a framework that seeks to balance and promote bilateral trade and investment. 'Given that the expectation from the US side was for countries to address the issues around trade deficit and non-tariff barriers to trade, the framework includes elements that address these issues and will be subject to negotiations between our two countries. 'The elements include procurement of gas from the US, addressing agricultural market access from both sides, promoting two-way investment, co-operation on critical minerals, co-operation among our development finance institutions and discussion on tariffs — in a manner that protects the common external tariff — and digital trade. All this will be done in a manner that preserves regional integration and industrial capabilities. The request from the South African side, among others, is for a maximum tariff of 10% while the two countries conduct negotiations,' Tau said. He added that the gas element of the package was twofold. 'First, to work on import of gas from the US to ensure security of supply and cater for domestic needs. Further, given the discovery of shale gas in South Africa, there is a need for co-operation on technologies,' Tau said.
