5 November 2019
National treasury is calling for technical tax proposals for the 2020 Budget Review.
In a statement, treasury points out that technical tax proposals are contained in Annexure C of the Budget Review while major tax policy proposals are contained in Chapter 4 of the Budget Review.
According to treasury, the “technical tax proposals requested in this invitation must be limited to unintended anomalies, revenue leakages, loopholes and technical matters applicable to the current tax legislation that require correction”.
Submitted technical proposals need to fall within the current tax policy framework and should not change current policy or have significant revenue impact.
The headings under which technical tax proposals should be submitted include income tax –individuals, employment and savings; income tax –domestic business; income tax –international; other taxes such as value added tax, mineral and petroleum resource royalties; and tax administration legislation.
Technical proposals are invited until 25 November 2019.
Information workshops are planned for 4 and 5 December 2019.
Meanwhile, in response to Moody’s recent decision to affirm South Africa’s long term foreign and local currency debt ratings at ‘Baa3’ and also revise the outlook to negative from stable, treasury, in a statement, declared that “government is fully aware that short-and medium-term reforms are urgently required to improve economic performance over the next several years”.
Reference was made to the discussion document titled ‘Economic Transformation, Inclusive Growth, and Competitiveness: Towards Economic Strategy for South Africa’ released by treasury in August 2019 and a revised version on 30 October 2019.
“The document aims to address the largest binding constraints such as network industries, export-focused reforms and increasing competition in the economy.”
The finance minister, Tito Mboweni, called on government, labour, business and civil society to work together to turn the situation around.