Chairman, the Bills before the House merely translate the tax proposals made by the Minister of Finance during his Budget Speech in February into law.
The abolishment of taxation on pension funds has been applauded by the IFP but now the further reassessment of the lump sum of pensions and retirement funds is again a very, very positive move. As the Minister indicated, the mere fact that the R300 000 levels are brought in at R300 000, R600 000 and R 900 000, an elementary calculation in terms of this would translate into an actual saving on the first R900 000 of 50% of the actual monies and after a rough calculation, the individual can save about R150 000 in terms of this. That is really a very, very positive move. One of the key recommendations of the Katz Commission was the use of special amnesties to broaden the tax base and to encourage tax compliance. Sars has used a variety of these special amnesties over the years which could be one of the reasons why the tax base has grown so much and why tax revenue is constantly underestimated.
The small business tax amnesty is an example of the special amnesties to broaden the tax base and on its announcement, the IFP expressed strong support for it. We must therefore welcome the extension as indicated by the Minister in terms of this. We must also congratulate Sars, not just for its efficiency in tax collection but also for its transformation from the once dreaded Receiver to a trusted, compassionate and professional organisation that clearly has the confidence of the public as taxpayers.
The IFP noted that the Minister had announced on 4 June that he was requested by five organisations to extend the amnesty deadline for small businesses. These organisations were: the SA Institute of Professional Accountants, the SA Institute of Chartered Accountants, the SA Chamber of Business and the SA National Taxi Association. But then very mysteriously the National Professional Teachers Organisation of South Africa, Naptosa, was also among the small business representatives. Maybe I am just confused, but I don't see any relevance in teachers applying for amnesty in terms of the small business amnesty proposals. Or maybe I am not so confused and that it is the teachers that are confused. Maybe the teachers have confused small business with teaching to small children in primary schools.
The IFP would like to urge the Minister to consider other special tax amnesties in future, which may include the teachers in this case, on the evidence of the small business amnesty. There must be a very good chance that others in different categories would also prove to be as successful in broadening the tax base and the expected increases in revenue. I thank you. We in the IFP will support this Bill. [Time expired.]