Latest news with #StandingCommitteeonFinance
IOL News
4 days ago
- Business
- IOL News
Third time's the charm: Godongwana's 2025 budget finally approved
Minister of Finance, Enoch Godongwana's 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget. Image: Independent Newspapers Minister of Finance, Enoch Godongwana's 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget. This was Godongwana's third attempt to get the National Budget passed after an outcry over two proposals to increase VAT. During a joint meeting with Standing Committee on Finance, and the Select Committee on Finance, Members of Parliament adopted the document that establishes economic policy and revenue projections and sets the overall limits for government spending. The process, which took three hours on Wednesday, was not without its issues, with some members arguing that the process was flawed and that not everyone was able to make their voice heard. Insults also flew, with one member saying that her peers should 'learn to read'. In presenting the May 21 National Budget, Godongwana said there were no austerity measures, although government spending was held back. The fuel levy as well as sin taxes were increased. The budget invests over R1 trillion in critical infrastructure to lift economic growth prospects and improve access to basic services, Godongwana said on May 21. He added that this would be done without compromising the fiscal strategy of sustainable public finances. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Government has achieved its balancing act by reducing additional spending over the medium term by R68 bilion after facing a R75bn revenue hole as VAT was not being increased. In May, Godongwana added that the government would continue to pay large amounts to service debt, which would amount to more than R1.3 trillion over the next three years. 'Put differently, this means in 2025/26 alone we are spending around R1.2bn per day to service our debt,' he said. IOL
Business Recorder
4 days ago
- Business
- Business Recorder
South African rand edges up before parliamentary committee debates budget
JOHANNESBURG: The South African rand edged up on Wednesday before a parliamentary committee was due to debate the long-delayed national budget. At 0730 GMT, the rand traded at 17.81 against the dollar , about 0.2% stronger than Tuesday's closing level. The Standing Committee on Finance was to meet from 0800 GMT to consider the first piece of legislation associated with the budget. It is set to adopt a report to either recommend that lawmakers pass the fiscal framework and revenue proposals or send them back to the National Treasury for further changes. The budget was meant to be presented in February but has had to be revised twice due to disagreements in the ruling coalition government, largely over contentious plans to raise tax. The third budget version presented by Finance Minister Enoch Godongwana in May is now expected to pass, after a coalition partner that rejected the two previous iterations backed it. South African rand slips before Q1 GDP data, analysts forecast no growth Early on Wednesday a purchasing managers' index survey showed South African business activity grew at its fastest pace in four years in May. That followed Tuesday's gross domestic product data showing Africa's biggest economy stagnated in the first quarter. The benchmark 2035 government bond was slightly stronger in early deals, as the yield fell 2.5 basis points to 10.085%.
Express Tribune
15-05-2025
- Business
- Express Tribune
Captive power levy sparks Senate clash
Federal Law Minister Azam Nazeer Tarar and Opposition Leader Shibli Faraz engaged in a heated debate on Thursday over a money bill proposing an "off-the-grid" levy on gas-based captive power plants. The exchange took place after Senator Anusha Rahman, on behalf of the Standing Committee on Finance Chairman Saleem Mandviwalla, presented the committee's report on the Off The Grid (Captive Power Plants) Levy Bill, 2025 in the house. Opposing the bill, Fraz argued that imposing a levy on captive power plants would negatively impact not only industries but also housing societies that depend on them. He warned that the added cost would hurt industrial growth. In response, Law Minister Tarar said that electricity prices had dropped by Rs10 per unit in the past two months. He added that the decision to impose the levy was made after thorough deliberation by Prime Minister Shehbaz Sharif. "Re-negotiation has been carried out with three power plants, and all the things have been discussed in the standing committee," Tarar told Faraz. "I was hoping that the opposition leader would himself attend the committee meetings on the matter," he added. Tarar said that captive power plants earned significant profits over their cost, adding that poor people were also taken into consideration while drafting the policy. Faraz, meanwhile, insisted that with the imposition of the levy, electricity for industries will become expensive. "Unemployment will increase due to the high cost of electricity for industries." He then addressed directly to the minister, saying: "Talk about the captive power plants, instead of my presence in the committee meeting. While presenting the report, Anusha Rehman said that the recommendations on the money bill had been approved unanimously by the standing committee. She said that the Senate's recommendations would also be sent to the National Assembly Secretariat. Earlier, the Senate Committee on Finance met with Anusha Rehman in the chair. During the meeting, Petroleum Secretary Momin Agha told the committee members that the government wanted to transfer captive power plants to the electricity grid. While giving a briefing on the bill, the additional finance secretary said that 70% of captive plants were in Sindh. After a detailed review, the chair ruled that this bill was passed unanimously and recommendations would be sent to the house. Meanwhile, four committee reports were also presented in the Senate. Senator Shahadat Awan, on behalf of Farooq Naek, chairman of Standing Committee on Law and Justice, presented the report on The Civil Courts (Amendment) Bill, 2025. Standing Committee on Federal Education and Professional Training Chairperson Senator Bushra Anjum Butt presented the report on The Nexus International University of Health Emerging Sciences and Technologies, Islamabad Bill, 2025. Minister for Human Rights, Senator Azam Nazeer Tarar laid before the Senate the Annual Reports of the National Commission for Human Rights for the years 2023 and 2024.
Express Tribune
10-05-2025
- Business
- Express Tribune
NA panel slams 'brutal' tax law
A parliamentary committee on Friday expressed serious reservations over the recently promulgated the Tax Laws (Amendment) Ordinance, 2025, declaring it a brutal measure. A meeting of the National Assembly's Standing Committee on Finance was held at the Parliament House under the chairmanship of Syed Naveed Qamar. During the meeting, members belonging to the PPP expressed reservations over the presidential decree. Commenting on it, Qamar noted that the tax ordinance was issued just a day before the National Assembly session. "This is highly inappropriate. What was the emergency that required issuing a tax ordinance before the June budget?" he asked. Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial stated that while sales tax law allows production monitoring, this provision was absent in income tax. He claimed that poultry companies were involved in tax evasion, noting that the cost of producing a chick is Rs65 to Rs75, while companies are making Rs100 profit per chick daily. "A company had been paying Rs1.3 billion in annual tax but actually it owed Rs10 billion. After action was taken against the company, chicken prices began to decrease," he stated. He said income tax returns of similar companies are fraudulent. "The presidential ordinance grants the FBR authority to monitor production and empowers it to recover taxes after orders from the Commissioner Appeals, Assessment Officer, and Tribunal,' he said. The chairman revealed that tax evasion in the tobacco sector is estimated between Rs250 to Rs300 billion and that provincial police and administration will be given powers to catch tax evaders. However, he admitted the ordinance will not yield substantial recovery, estimating only a 5% to 10% increase or about Rs30 billion in additional revenue. He said both the Federal Cabinet and the president had made an informed decision in issuing the ordinance. Naveed Qamar warned that police officers may abandon their regular duties to pursue tax enforcement.
IOL News
25-04-2025
- Business
- IOL News
Godongwana's new Bill aims to abolish VAT hike before May deadline
The new Rates and Monetary Amounts and Amendment of Revenue Laws Bill tabled by Finance Minister Enoch Godongwana in Parliament on Thursday has been referred to the Standing Committee on Finance and the Select Committee on Finance for information. Image: Independent Newspapers Finance Minister Enoch Godongwana has officially introduced a new Bill in Parliament to replace the proposed increase in Value Added Tax (VAT) ahead of its scheduled implementation date of May 1. This emerged in the Parliament's communiqué, known as Announcements, Tablings and Committee Reports (ATC) published on Thursday night. The tabling of the new Rates and Monetary Amounts and Amendment of Revenue Laws Bill comes after Godongwana announced earlier on Thursday his decision to scrap the VAT increase amid the court case instituted by the DA and EFF in the Western Cape High Court and negotiations involving the ANC and other small parties. The ATC notice said the new Bill has been referred to the Standing Committee on Finance and the Select Committee on Finance for information. It also said the Bill will be referred to the Joint Tagging Mechanism (JTM) for classification. 'The Bill may only be classified after the expiry of at least seven parliamentary working days since introduction,' reads the ATC. The introduction of the new Bill scrapping the 0.5% VAT increase was done simultaneously with the withdrawal of the Appropriation Bill and the Division of Revenue Bill. 'The Bill seeks to pre-empt the increase of the rate in terms of Section 7 of the Value-Added Tax Act, 1991, announced by the Minister of Finance in the national annual Budget of 2025,' reads the content of the new Bill. In a twist of events, the EFF has written to National Assembly Speaker Thoko Didiza, raising constitutional and parliamentary implications from Godongwana's withdrawal of Budget-related bills. Chief whip Nontando Nolutshungu said despite their pending court challenge, they remained committed to engaging through parliamentary structures to resolve the matter. Nolutshungu reminded Didiza that the Red Berets had written to her, cautioning that the report of the Standing Committee on Finance had been adopted unprocedurally and should have been withdrawn. 'Instead of constructively addressing these concerns, you dismissed them outright and allowed the matter to proceed despite knowing the legal and procedural implications,' she said. Nolutshungu said the EFF was now seeking clarification on whether Godongwana intended to also withdraw the 2025 Fiscal Framework and Revenue Proposals that were adopted by the National Assembly. 'If so, we request that you advise the National Assembly on the appropriate constitutional and procedural mechanisms that will be used to reverse a resolution of Parliament, given that such resolutions have legal standing and implications,' wrote Nolutshungu. She urged Didiza to convene a meeting of all leaders of political parties represented in Parliament to deliberate Godongwana's decision to withdraw critical Budget instruments and the path towards legal, economic, and institutional certainty. The DA has indicated that despite Godongwana wishing to enter into an out-of-court-settlement, the battle was not yet over. Federal council chairperson Helen Zille told the media on Thursday that they were expecting a formal settlement proposal from Godongwana's lawyers. She had indicated that there was still the issue of the acceptance of the fiscal framework by the portfolio committee. 'There is no precedent that we know of how that can be set aside.'
