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Irish Independent
4 days ago
- Business
- Irish Independent
VAT receipts up but corporation tax takes ‘marked' drop from last year
The amount of Value Added Tax (Vat) collected to the end of May was €11.4bn, up €0.6bn or 5.5pc on the same period in 2024, despite the turbulence caused by US president Donald Trump's tariffs. In May, a Vat-due month, some €3.5bn was collected, which was €0.1bn more than in the same month last year. Daryl Hanberry, head of tax and legal, at Deloitte Ireland, said: the increase in Vat was good news. 'This reflects continued strong levels of employment and the fact that consumers are continuing to spend. We can't take this for granted, and we need to invest further for our growing population,' he said. Income tax receipts in May were €2.8bn, according to the latest Exchequer returns, which was up 3.6pc on the same month last year. On a cumulative basis, €14.5bn in income tax has been collected in the year so far, up €0.6bn or 4.5pc. This reflects a scenario of almost full employment. Total tax receipts of €38.2bn were collected to the end of May, up €3bn or 8.5pc. But when the windfall Apple tax revenues are taken out, the figure stood at €36.4bn, which was just €1.3bn or 3.6pc ahead. May is considered an important month for corporation tax revenues, and €2.5bn was collected, which was down €1.1bn, or just over 30pc, on the same month last year. Receipts in May 2024 were boosted by one-off factors, however. Overall, and excluding money from the Apple tax settlement, corporation tax this year stands at €5.7bn, which is €0.6bn or 9.4pc down on the same period in 2024. Orla Gavin, head of tax at KPMG, said: 'The dip in corporation tax receipts in May, down just over €1bn on May 2024, is unexpected, given the steady performance of corporation tax payments to date this year. 'While May is a significant month for corporate tax payments, the decline may be due to the concentrated nature of taxpayers rather than a general indication of business performance owing to global trade uncertainties. The key months of June and November will be crucial in assessing whether the government's corporation-tax forecasts for the year are achievable.' Paschal Donohoe, the minister for finance, also said the most notable feature of the Exchequer returns for May was in respect of corporation tax, which he agreed had seen a 'marked' drop year-on-year. ADVERTISEMENT 'While this reflects once-off factors last year, it nonetheless highlights the degree of concentration in the corporate tax base, wherein a small number of multinational firms can significantly impact on the overall tax yield,' he added. 'In a context of unprecedented uncertainty in the international economic landscape, this serves as a timely reminder of Ireland's exposure to changes in the global trading environment, and of the vital importance of adhering to a sensible and sustainable budgetary strategy.' Total gross voted expenditure in the first five months of the year amounted to just under €42bn, up just over 8pc on last year, but €37m behind profile. Overall, an Exchequer surplus of €4bn was recorded to the end of May. This compares to a surplus of €0.8bn last year, but the comparison is again distorted by the Apple tax settlement. Once that is taken out, the underlying surplus of €0.7bn is €0.1bn behind the same period last year. The Minister for Public Expenditure, Jack Chambers, said: 'We are seeing a significant increase in capital spending in particular, up by almost a third year on year. This underscores Government commitment to tackling infrastructure gaps in our economy and society. "I am currently undertaking a review of the National Development Plan to further target investment in the critical, growth enabling areas for the rest of the decade and will be bringing this review to Government next month.'
India Today
26-05-2025
- Lifestyle
- India Today
Vat Savitri Vrat: Know when and why it is celebrated, katha time, what to eat
The Vat Savitri Vrat is an important and sacred festival celebrated by married Hindu women, particularly in states such as Uttar Pradesh, Bihar, Madhya Pradesh, and Maharashtra. In 2025, this festival will be observed on Monday, May 26. The vrat honours Goddess Savitri, who is revered for her unwavering determination and dedication in reviving her husband, this day, women pay homage to the Vat (Banyan) tree, wind threads around its branches, and pray for their husbands' good health, prosperity, and longevity. Most women undertake a strict fast, and some observe a waterless fast, known as a nirjala fasting is a crucial element of this vrat, it's also important to be mindful of the foods to eat and avoid maintaining energy levels and stay healthy. Whether you choose to keep a partial fast or a full fast, this article will guide you on how to properly observe the Vat Savitri Vrat in 2025. DATE, PUJA MUHURAT, RITUALS, AND FASTING VIDHIAccording to the Hindu Panchang, Jyeshtha Amavasya for the year 2025 will start on May 26 at 12:11 PM and will continue till May 27 at 8:31 AM. Vat Savitri Vrat will fall on Monday, May 26, Puja Muhurat to conduct the principal ceremonies is from 8:52 AM to 10:25 AM. Outside of this, the Abhijit Muhurat, which is very good, lies between 11:11 AM and 12:46 PM. The other suitable time for puja is in the afternoon, i.e., between 3:45 PM and 5:28 this day, wives sit beneath the Vat Vriksha (banyan tree) to pray. They either hear or read the tale of Savitri and Satyavan, and do parikrama (go around the tree) and encircle a raw cotton string around the trunk of the tree. This is said to ensure the longevity, good health, and prosperity of their TO EAT DURING VAT SAVITRI FASTYou may have dry fruits and seasonal fruits such as banana, grapes, apple, watermelon, etc., during the fastSinghade atta puris, jaggery sweet puris, and murabba may also be consumedIf you are witnessing a Jal Aahar, you can consume milk, coconut water, and fruit remember, nothing has to be consumed or ingested before the Vat Savitri puja. You can have all these only after the puja (Fasting rituals could be different depending on the place and family customs).Yahan Padhein Vat Savitri Vrat Katha Bohot samay pehle ki baat hai. Bhadra Desh naam ke rajya mein Ashwapati naam ke raja aur unki rani Malawati rehte the. Unke ghar ek sundar aur tejwali kanya ka janm hua, jiska naam unhone Savitri rakha. Savitri bohot buddhimaan, dharmik aur sundar Savitri vivaah yogya hui, to uske pita ne use swayam apna var chunne ki chhutti ne Satyavan naam ke ek rajkumar ko apna pati chun liya. Satyavan ek vanvaasi raja Dyumatsen ke putra the, jo kisi kaaran apna rajya kho chuke the aur ab van mein rehte the. Lekin ek badi samasya yeh thi ki ek bhavishyavani ke anusar Satyavan ki mrityu ek saal ke andar hone wali Savitri apne faisle par drid rahi aur usne Satyavan se vivaah kar ke baad Savitri apne pati aur sasural walon ke saath jungle mein rehne lagi. Vah sabka poora dhyan rakhti thi aur seva mein lagi rehti din Satyavan ki mrityu hone wali thi, us din Savitri ne vrat rakha aur Vat vriksha ke neeche baith kar pooja ki. Jab Satyavan lakdiyaan kaatne jungle gaya, to Savitri bhi uske saath chali gayi. Thodi der baad Satyavan ke sir mein tezz dard hua aur vah Savitri ki god mein let Yamraj, jo mrityu ke devta hain, Satyavan ki aatma lene ne Yamraj ka peecha kiya aur unse prarthana ki ki wo Satyavan ki jaan wapas de dein. Pehle to Yamraj raazi nahi hue, par jab unhone Savitri ka prem, samarpan aur buddhi dekhi, to wo prabhavit ho Savitri ko teen var maangne ka vachan var: Savitri ne apne sasur ka khoya hua rajya wapas maangaDusra var: Sasur-saas ki aankhon ki roshni wapas maangiTeesra var: Usne apne liye 100 putron ka vardaan maangaYamraj ne bina soche samjhe teeno var de diye. Par jab Savitri ne kaha ki bina pati Satyavan ke woh maa kaise ban sakti hai, to Yamraj ko apni galti ka ehsaas unhone Satyavan ko jeevan daan de diya.
The Citizen
21-05-2025
- Business
- The Citizen
Budget 3.0: Alcohol and cigarette prices will increase — here's is by how much
Excise duties on alcohol and cigarettes will still go up, as industry leaders say the increase was already at the maximum. Finance Minister Enoch Godongwana's third draft of the widely disputed budget has given little relief for consumers of cigarettes and alcohol. The minister delivered his second budget speech in three months on Wednesday after budget 2.0 collapsed over the proposed hike in Value Added Tax (Vat). Godongwana's first attempt in February was postponed without a word being spoken, and hopes are high that this version will be voted for by the national assembly. Excise duties still up As with the previous speech, excise duties were not specifically mentioned, but were detailed in an accompanying document. 'The March 2025 Budget Review outlined tax proposals for 2025/26 and 2026/27. Except as otherwise indicated below, these proposals stand unchanged, including for personal income tax, transfer duties and excise duties,' the May budget overview stated. Industry leaders were not expecting any change to the earlier version, stating that the government had played their alcohol and cigarette hand as much as they could. 'We honestly did not expect that the minister would increase excise duties from the original and budget 2.0 version as the increase was already at inflation plus 2%,' National Liquor Traders Council convenor Lucky Ntimane told The Citizen. 'There really is not enough money to be raised in excise as a percentage increase can only give you an extra R100 million,' he explained. Alcohol and cigarette increases While excise duties were not changed, enjoyers of alcohol and cigarettes will still be paying extra in the coming financial year. Excise duty on cigarettes and all other tobacco products, including vapes, will increase by 4.75% or an extra R1 on the average box of cigarettes. Wine, spirits and beer will all be increasing by 6.75% in the next financial year, while the cost of traditional African beer will not be increasing. The increases will add an extra R1.20 to a bottle of sparkling wine, R6 to a bottle of spirits and an extra 16 cents to a can of beer. NOW READ: Billions' worth of weight loss and diabetes medications reached SA shelves and patients in 2024
The Citizen
13-05-2025
- Business
- The Citizen
Budget 3.0: Provincial budgets in the firing line?
Meeting between minister of finance and all provincial finance MECs set to take place on Tuesday. The Gauteng legislature has been informed that it 'should be ready' in the event that it has to withdraw its budget and present a new one. Picture: Shutterstock Provincial governments will know if they have to withdraw their budgets and resubmit amended budgets to their legislatures after a meeting with National Treasury on Tuesday (13 May). Gauteng MEC for Finance and Economic Development Lebogang Maile said there have been no engagements between the Gauteng government and Treasury over possible budget cuts since disputes arose in the government of national unity (GNU) over the national budget and proposed increases to the value-added tax (Vat) rate. However, he confirmed on Monday that there will be a meeting of what is called the Budget Council – which includes Minister of Finance Enoch Godongwana and all provincial MECs of finance – on Tuesday. 'We will know whether they will cut any budget on our part and whether there are going to be any changes,' said Maile. 'That will determine whether we leave this [Gauteng] budget as it is or we amend it to the legislature.' He added that the Gauteng legislature has already been informed of the situation and 'should be ready' in the event that it has to 'withdraw and present a new budget'. ALSO READ: Gauteng's budget: A fresh coat of paint on a crumbling province? Provisional go-ahead for KZN Tim Brauteseth, a Democratic Alliance (DA) member of the KwaZulu-Natal Provincial Legislature and spokesperson on finance, on Monday welcomed Treasury's confirmation that there will be no changes to KZN's equitable share and conditional grant allocation for the 2025/26 financial year. However, he added that: 'While the unchanged budget allocation spells good news, the fact remains that, despite the protections of Section 29 of the PFMA [Public Finance Management Act], KZN's budget remains in limbo until the national budget process is completed.' He explained that Section 29 allows the province 'to draw funds from the National Revenue Fund to cover essential services – up to a limit of 45% of the previous budget amount'. 'However, [any cuts to the budget] will be a very real test as our province continues to face significant challenges, including rising service delivery demands, infrastructure backlogs, and the need for urgent economic growth initiatives.' Godongwana is scheduled to deliver the amended National Budget on 21 May. Brauteseth's comments follow an announcement last week by KZN Finance MEC Francois Rodgers that the 2025 KZN Provincial Budget was being withdrawn following the withdrawal of the 2025/26 financial year National Budget. ALSO READ: Gauteng budget faces DA backlash over debt and spending concerns Gauteng's unspent funds Maile's comments on the Gauteng budget were made at a briefing on Monday to outline the province's state of finances and expenses and address, in particular, reports over the past week that the provincial government had underspent by R1.8 billion of its 2024/25 financial year budget and that these unspent funds would be returned to National Treasury. 'While there is legitimacy in the information on the underspent figure, there is fundamental misunderstanding and misinterpretation in so far as the process that follows this underspending. 'The concern that the underspent resources will no longer be available, or that they are lost by the Gauteng Provincial Government, is a misunderstanding that necessitates clarification,' he said. Maile said the Gauteng government recorded a total outcome or underspending of R1.799 billion, with R1.041 billion (58%) from the departments of health and education, and the balance of R769 million attributed to the rest of the departments. He said that of the R1.799 billion, R381 510 million was under conditional grants and R1.418 billion from provincial equitable share funds. ALSO READ: Gauteng budget: Here's where your money is going Rollovers possible Maile said conditional grants are subjected to a process where the Gauteng government applies to National Treasury to roll over unspent but committed funds, based on certain criteria and with firm supporting evidence to motivate the rolling over of these funds. He said in terms of Section 21(1) of the amended Division of Revenue Act, any conditional allocation that is unspent at the end of a financial year reverts to the National Revenue Fund unless the relevant receiving officer can prove to the satisfaction of National Treasury that the unspent allocation is committed to identifiable projects. Maile said it is stipulated that National Treasury may, at the request of a transferring national officer, receiving officer, or provincial treasury, approve a rollover from a conditional allocation to the next financial year. He confirmed that of the R381 510 million in conditional grant underspending, a total of R295 665 million was the subject of an application to National Treasury, while the relevant departments could not motivate and provide evidence for the balance of R85 845 million, which will revert to the National Revenue Fund. ALSO READ: Gauteng underspends budget but says R1.8bn not lost Will Gauteng have to return R85m … or R400m? Maile said if the rollovers are approved by National Treasury, the province will only have lost R85 million to National Treasury, 'not the R2 billion'. However, he subsequently corrected this statement and said there is about R200 million in applications for rollovers, and if they are not approved by National Treasury, the provincial government would have lost about R400 million to National Treasury because of underspending. 'But we are confident because we have done our own due diligence … '… and that is why we are recommending that specific figure because the other applications to the provincial treasury did not meet the requirement for rollover applications.' Maile added the R1.418 billion in Provincial Equitable Share funding will also be subject to an internal Gauteng government process led by the provincial treasury and subject to intense scrutiny, with all requests evaluated not just on financial aspects only but also on performance, to provide comfort there are no underlying impediments to the absorption of funds rolled over. 'This process aims to ensure that service delivery imperatives are realised,' he said. 'It is important to state that whatever funds cannot be motivated will revert to the Provincial Revenue Fund (PRF). 'Instructively, these funds remain available for re-allocation to programmes and projects and are in no way lost by the Gauteng Provincial Government,' he said. This article was republished from Moneyweb. Read the original here.
The Citizen
02-05-2025
- Business
- The Citizen
Budget 3.0 forces government to face all the cans it kicked down the road
Make the cuts – stop squeezing taxpayers and stop borrowing. There are at least three expenditure reviews 'that have been gathering dust' – it's time to 'blow off the dust' and see what they contain. Picture: Shutterstock Government is now at the end of the road where all the cans that have been kicked down over the years are gathered and waiting to be dealt with. There is no more room to increase borrowings, and the value-added tax (Vat) fiasco clearly demonstrated that raising taxes is not an option. Budget 3.0 is forcing government to make the difficult decisions that have been ignored for far too long. Finance Minister Enoch Godongwana has this time promised formal consultation with the Financial and Fiscal Commission, 'thorough consultations' with all the political parties in the government of national unity (GNU), and cabinet approval before presenting his third budget for 2025 on 21 May. Leading up to the tabling of the budget, National Treasury must revise economic assumptions, generate updated fiscal projects, and recalculate revenue projections and tax implications. The 0.5% increase in the Vat rate is now off the table, scrapping the projected additional income of R13.5 billion but gaining R2 billion by not expanding the list of zero-rated products. The country needs targeted cuts, and taxpayers need bang for their buck. In Budget 2.0, the government wanted to raise R19.5 billion in additional income tax from individuals through no inflationary adjustment to medical tax credits and no adjustment to tax brackets and rebates. 'One wonders whether political parties have placed this on the negotiating table,' asks Charles de Wet, tax executive at ENSafrica. ALSO READ: Treasury might have to revisit spending priorities now that VAT is off the table — IMF Tough times Webber Wentzel tax consultant Des Kruger says it is going to be a tough time. He warns that government may still reach a deadlock because of the difference in priorities among the GNU partners. 'All the minister can do now is to reallocate the income that he expects to collect without the Vat increase. He must look at cuts to balance the books.' During the public participation process leading up to Budget 1.0 and Budget 2.0 several issues of concern were raised and remain unaddressed given the outcome of the 12 March budget proposals. The issues include National Treasury's overoptimistic growth forecasts, which do not consider the 'myriad of challenges' facing the country. This results in optimistic revenue estimates. There have never been any proposals for meaningful expenditure cuts. Dawie Roodt, chief economist at the Efficient Group, told BizNews that government cannot even perform 'symbolic' spending cuts like cutting expenditure on the blue-light brigades. De Wet says the calculations on budget allocations normally take months. 'It is not something that you do quickly on the back of a cigarette box.' ALSO READ: Godongwana consents to court order against VAT increase Cuts, but not austerity South Africa does not need an austerity budget where there are expenditure cuts across the board. The country needs enough doctors, nurses, teachers and police officials. 'We are in the difficult position of low economic growth and that creates the need for austerity, but it does not mean haircuts across the board,' says De Wet. There are at least three expenditure reviews that have been gathering dust. It is time to blow the dust off them to see if there are recommendations that will have short-term beneficial effects. De Wet says there are several possibilities, but many of the measures cannot be implemented overnight. One area that requires closer attention is the more than 20 Sector Education and Training Authorities (Setas). All Setas have operational structures that cost money, and many are simply outsourcing the training because of a lack of capability. The question remains how much money simply slips through the outsourcing cracks. Another issue is the renegotiation of the Southern African Customs Union agreement, including measures that would allow member countries Botswana, Lesotho, Namibia, and eSwatini to adapt to fiscal impacts. ALSO READ: Where will the minister find the money to make up for scrapping the VAT increase? The 'tax gap' A lot of faith is placed in the South African Revenue Service (Sars) to close the 'tax gap' that is estimated to be close to R800 billion. Godongwana has announced additional revenue allocations of R7 billion to Sars over the medium term. Taxpayers are frustrated with Sars and its processes. It is all good to improve processes and introduce more artificial intelligence to become a modern and sharp revenue authority, but people want a warm body to interact with. De Wet says in many instances improved systems have increased the administrative burden on taxpayers and discouraged foreign direct investments because of the difficulty of doing business in SA. Roodt warns against more funds being allocated to Sars to increase revenue collections. He told BizNews that he is against any measures to give more money to the minister of finance. 'The only way to force politicians to spend less money, is to give them less money,' he is reported to have said. For many years, taxpayers have heard about Sars going after the 'low hanging fruit', says De Wet. There can be no more low-hanging fruit. Maybe it is time for Sars to look at new orchards to collect its fruit from. Sars has identified key 'under-resourced areas' – including illicit trade, syndicated tax crimes, and aggressive tax planning by large businesses and high-net-worth individuals. De Wet hopes negotiations before 21 May between government and its coalition parties will be transparent to avoid any surprises. 'Although one cannot expect complete agreement between the parties, one expects consensus on what is in the interest of the country.' There is no more room for political posturing. This article was republished from Moneyweb. Read the original here.
