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Adjustments Appropriation Bill Sent to NCOP

December 14, 2021


The national assembly has passed the 2021 Adjustments Appropriation Bill and sent it to the national council of provinces (NCOP) for concurrence.

The bill was tabled in parliament on 11 November 2021 during the Medium Term Budget Policy Statement (MTBPS).

The bill seeks to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2021/22 financial year; and to provide for matters incidental thereto.

In its report, the standing committee on appropriations welcomed the proposed additional allocation of R50.2 million to the South African National Roads Agency for toll revenue loss and R12.1 million for damage to property during the July 2021 unrest.

The committee also welcomed the proposed allocation of R7.1 billion earmarked in the 2021 budget, particularly proposed allocations towards the Presidential Youth Employment Initiative, and the proposed R2.96 million roll-over to the Presidency for the implementation of action plans to address gender-based violence.

The committee adopted the bill without amendments.

The select committee on appropriations will process the bill.

Meanwhile, national treasury last week provided a response to the NCOP on submissions on the 2021 tax bills.

The Taxation Laws Amendment Bill, Tax Administration Laws Amendment Bill and Rates and Monetary Amounts and Amendment of Revenue Laws Bill were tabled in parliament on 11 November 2021 during the MTBPS.

The select committee on finance held public hearings on the draft bills last week.

Treasury pointed out that the issue of Minimum Retail Sales Price for cigarettes is a new proposal in terms of the current policy regime.

Treasury added that the excise policy framework for tobacco products is currently under review.

According to treasury, the problem of illicit trade of tobacco products “cannot be sorted out through the excise rate adjustments but needs to be effectively addressed through robust compliance and law enforcement mechanisms”.

The South African Revenue Service (SARS) has been working hard to rebuild internal capacity and has also, through the Inter-Agency Working Group on Illicit Trade, been implementing compliance and enforcement measures.

As regards the illicit trade in alcoholic products, treasury informed the select committee that government is aware of the studies conducted regarding the problem of illicit trade in alcoholic products, especially during the various periods of trade restrictions imposed by Covid-19 Disaster Management Act Regulations.

“Illicit trade is a concern for Government, both in terms of undermining public health and harm reduction objectives, and fiscal collections.”

Efforts from both SARS and law enforcement agencies are underway to address the problem.