Latest news with #R4bn
The Herald
26-05-2025
- Business
- The Herald
Pick n Pay results show recovery is starting to take shape
'This was an important year for Pick n Pay as we executed the first leg of our operational and financial recovery. We are exactly where we said we would be when presenting the strategy last May, and in some aspects we are tracking slightly ahead. Particularly pleasing is the reduction in our Pick n Pay trading loss by 64% after predicting a 50% reduction' The first of its six strategic priorities announced in May last year was to recapitalise the Group. In this financial year, the Group completed its two-step recapitalisation plan, raising R12.5bn through the Pick n Pay rights offer (R4bn) and the Boxer JSE listing (R8.5bn) and restoring the Group to a net cash position of R4.2bn. 'We have started to give much-needed attention to our core Pick n Pay supermarkets and we are pleased to see the early results in reporting positive like-for-like (LfL) sales growth, notwithstanding the sustained pace of new store openings by our competitors in a restrained and competitive market,' said Summers. Company-owned supermarkets delivered consistent gains in sales growth, improving from -0.5% in the 2024 financial year to +3.6% in the period under review. 'Our franchisees have also shown steady positive recovery and the positive LfL momentum has continued in the first eight weeks of FY26,' said Pick n Pay. Summers said some of the loss-making stores that were converted are returning to profitability. Pick n Pay has also started opening new stores and will increasingly refurbish its supermarkets. Pick n Pay Clothing delivered 11.6% growth from standalone stores. It opened 30 company-owned stores during the financial year, to bring the total estate to 415 stores. 'When I returned in October 2023 I stated the recovery of Pick n Pay would be a multiyear process and that things would get worse before they got better. It is our sense that we see this unfortunate chapter bottoming out and we have recalibrated our recovery programme to break even in FY28.' Business Times
TimesLIVE
22-05-2025
- Business
- TimesLIVE
Budget's revenue-generating measures could affect citizens: DaVinci Institute
The DaVinci Institute has expressed concern that the budget's revenue-generating measures, especially a proposed fuel levy increase, could negatively affect ordinary citizens. Finance minister Enoch Godongwana, in his budget speech on Wednesday, announced an increase in the fuel levy for the first time in three years, set to take effect on June 4. The levy will rise by 16c/ l for petrol, bringing it to R4.01/ l, and by 15c/ l for diesel, bringing it to R3.85/ l. The fuel levy increase is expected to generate about R3.5bn to R4bn in this financial year. The business school said this will probably increase the cost of living, including food and transport. 'Yet, there is no clear mechanism to create sustainable jobs and grow the economy at the rate at which it could absorb most of the people of working age in South Africa.' It said the National Treasury's revised budget featured some cuts and lower revenue predictions due to a reduced forecast for GDP growth. The revised budget forecast an average annual spending growth of 5.4%, increasing from R2.4-trillion in 2024/2025 to R2.81-trillion in 2027/2028. 'This is a decrease from the previously proposed 5.6% growth in March, resulting in an estimated reduction of about R200bn over the medium-term three-year period. The school said government's debt service costs consumed 22 cents of every R1 of revenue. The National Treasury has reduced gross tax revenue projections by R61.9bn for the 2025 medium-term expenditure framework period, though the figures still exceed those from the 2024 medium-term budget policy statement. 'For South Africa to achieve its previous 5% GDP growth target and reduce unemployment, [there is] a need for increased foreign direct investment (FDI). 'An additional 15% of GDP in fixed investment is required to reach this growth goal. South Africa's fiscal and industrial policies must be designed to attract foreign investment. Without this the long-term economic outlook will remain constrained.' The school said there was concern about a lack of accountability in governance, particularly at local government level, to ensure the budget led to tangible economic benefits. Poor governance and inefficiencies in state institutions remained a serious concern. 'More attention must be given to the unseen cost of governance failures in key state organs.' It said preconditioned measures for accountability, transparency and spending oversight should be followed up and reported on effectively to prevent leakages in the system. The budget speech laid out bold fiscal strategies but the true test lay in execution and alignment to the medium-term development plan 2024 — 2029. 'Sustainable economic growth, tax optimisation, increased FDI and accountable governance will be essential in shaping South Africa's financial future.'
SowetanLIVE
22-05-2025
- Business
- SowetanLIVE
ANC's Mbalula reacts to US State visit and budget speech
Sars allocated R4bn to boost its capacity to collect tax revenue Finance minister Enoch Godongwana has allocated an additional R4bn to Sars to help it strengthen its capacity to collect more tax revenue. News
The Herald
21-05-2025
- Business
- The Herald
Sars allocated R4bn to boost its capacity to collect tax revenue
In his latest budget proposals, dubbed budget 3.0, he announced that he was allocating R4bn to the taxman in the current financial year, with Sars receiving an additional R7.5bn in the Medium-Term Expenditure Framework (MTEF) or the next three years. Godongwana's latest budget documents also showed that Sars had collected R95bn in debt during the previous financial year of 22024/2025. 'Over the MTEF period, the agency will receive an additional R7.5bn relative to the baseline. 'Part of this allocation is expected to increase debt collection by R20bn to R50bn per year. 'This potential revenue is not included in the revenue estimates. However, the performance of SARS will be monitored by assessing the change in the amount of cash collected, which will be published monthly.' Godongwana had previously allocated R3.5 billion to SARS during the medium budget policy statement in November last year. The allocations will also see SARS investing in new technology, data science and artificial intelligence to beef up its capacity to collect more money. SARS commissioner Edward Kieswetter has previously called on the national treasury to allocate it more resources for it to also go after tax dodgers. At a pre-budget briefing, Kieswetter said he would be hiring up to 1,700 debt collectors chase billions of rands owed to Sars. 'In the month of April, we already hired 500, we've used the month of April to train them and upskill them, from the first of June we'll bring a further 250 and that takes us to about 750,' Kieswetter explained. Sars was aiming to collect at least R120bn in total tax debt in the MTEF period. At the same time, Godongwana has reduced allocations to the government's early retirement programme. The early retirement plan is aimed at reducing the number of public servants by encouraging government employees aged 55 and above to retire early without incurring early withdrawal penalties. The early retirement package has now been cut from R11bn to R5.5bn from this year, up to 2027. 'Discussions with organised labour on the process are underway in the Public Service Co-ordinating Bargaining Council (PSCBC). The allocation will be revisited on the conclusion of these consultations as part of the next budget process, although functions that are not parties to the PSCBC process-such as the department of defence-can proceed with implementation.' Duncan Pieterse, the director-general of the national Treasury, said they were not aiming to entice at least 15,000 civil servants of advanced age to take early retirement, reduced the 30,000 that had been announced last year. Allocations to the department of defence have also been cut by R2bn, due to the 'expedited schedule for withdrawal' of SANDF troops from the Democratic Republic of Congo. TimesLIVE
TimesLIVE
21-05-2025
- Business
- TimesLIVE
Sars gets R4bn to hire army of debt collectors
Finance minister Enoch Godongwana has allocated R4bn to the South African Revenue Service (Sars) in the current financial year to help it strengthen its capacity to collect more tax revenue. The tax authority will immediately use the money to hire more than 1,000 debt collectors to claw back up to R50bn per year in revenue owed to Sars. Godongwana made the announcement when he tabled the 2025/2026 budget in parliament on Wednesday, his third attempt since February. The two previous budget proposals, the first on February 19 and the second on March 12, were rejected by some ANC ministers, parties in the government of national unity (GNU) including the DA and the Freedom Front Plus, and those outside the GNU including the EFF and MK Party. They had clashed over Godongwana's proposals to raise VAT, since dumped after the DA and the EFF challenged the matter in court. Godongwana's latest budget documents show Sars collected R95bn during the previous financial year of 2024/2025. 'Over the medium term expenditure framework (MTEF) period [of three years], the agency will receive an additional R7.5bn relative to the baseline. Part of the allocation is expected to increase debt collection by R20bn to R50bn per year. 'The potential revenue is not included in the revenue estimates. However, the performance of Sars will be monitored by assessing the change in the amount of cash collected, which will be published monthly.' Godongwana had previously allocated R3.5bn to Sars during the medium budget policy statement in November last year. The allocations will also see Sars investing in new technology, data science and artificial intelligence to beef up its capacity to collect more money. Sars commissioner Edward Kieswetter has previously called on National Treasury to allocate it more resources for it to go after tax dodgers. At a pre-budget briefing, Kieswetter said he would hire up to 1,700 debt collectors to chase billions owed to Sars. 'In April we hired 500. We've used April to train and upskill them. From June 1 we'll bring a further 250 and that takes us to about 750,' Kieswetter said. Sars was aiming to collect at least R120bn in total tax debt in the MTEF period. Less for early retirement spending and defence amid DRC withdrawal Godongwana has reduced allocations to the government's early retirement programme. The early retirement plan is aimed at reducing the number of public servants by encouraging government employees aged 55 and above to retire early without incurring early withdrawal penalties. The early retirement package has been cut from R11bn to R5.5bn from this year up to 2027. 'Discussions with organised labour on the process are under way in the Public Service Co-ordinating Bargaining Council (PSCBC). The allocation will be revisited on the conclusion of the consultations as part of the next budget process, though functions that are not parties to the PSCBC process, such as the department of defence, can proceed with implementation.' Allocations to the department of defence have been cut by R2bn due to the 'expedited schedule for withdrawal' of SANDF troops from the Democratic Republic of the Congo.
