Thank you hon Deputy Speaker, let me start of by saying that, yes, increase in tax is a burden
particularly to the poorest of the poor. The gap between the rich and the poor is increasing on a daily basis in South Africa. It has not made positive impact on the lives of the poorest of the poor.
In South Africa, Health, Police Service and Social Development are underbudgeted, but there are hundreds of billions of rands that are being embezzled or stolen through corruption, fraud and maladministration.
The NFP welcomes the reports that are here. We note that the purpose of this Bill is to deal with changes in rates and monetary thresholds. The NFP welcomes the increase particularly on alcohol and tobacco.
I am not sure why some of the members seem to take offense particularly to the increase in taxes on alcohol because it is common knowledge in South Africa that alcohol is the most single item that has a massive impact on crime and health. Unless we deal with this thing so that it becomes a deterrent so that people can begin to reduce the consumption of alcohol and particularly tobacco; the challenges that the health sector and the
socioeconomic conditions face will continue. I think we need to support it particularly when we increase taxes on tobacco and alcohol.
We welcome the amendment being sought to relieving surviving spouses of additional tax liability alleviating financial burdens when withholding taxes by the retirement funds on spousal pensions. I think this must be welcome because it has a positive impact particularly on those spouses who have estates of the deceased because the amounts that they generally have to pay with regard to taxes and things, is a serious challenge for these people in South Africa.
On the proposal to review allowable deductions for investors in a venture capital company, we note the resistance and submissions made.
The introduction of the Employee Tax Incentive in 2014 to promote the employment of young workers between the ages of 18 to 29 was welcome at that stage, however, no study or research has been done to date to establish its success. We, however, note the submission made by the
committee that a process will be undertaken to establish its successes or failures. The NFP supports the Report tabled here today. Thank you.