Hon Deputy Speaker, the National Assembly has the constitutional right to impose taxes in order to raise revenue for government. The Amendment Bill before us requires our support, first of all to fix the rates of normal tax. The Bill proposes that the primary rebate be adjusted from the previous amount of R12 080 to R12 726, which equals R646 or 5,34%.
For those who are 65 years of age or older on the last day of the year of assessment, a secondary rebate is allowed. The Bill proposes that the amount be adjusted from R6 750 to R7 110 which comes to R360. Again, this is a 5,3% adjustment. For those who are 75 years of age or older on the last day of the year of assessment, the present tertiary rebate of R2 250 is adjusted to R2 367. This is a 5,2% adjustment and equals R117.
In Cope's view the adjustment in the rebates is marginally less than inflation. With such reduction measures, small as they may be, government will take more from taxpayers than in the previous year. If we look at the recent media reports, it has already done a lot more than what was budgeted for.
For those whose taxable income is in the bracket R272 700 to R377 450, the tax rate will begin at R55 957 and go up by 30% when it is above R272 700. For those whose taxable income is in the bracket R377 450 to R528 000, the tax rate will begin at R87 382 and go up by 35% when it is above that figure.
In respect of the brackets, the National Assembly has over the last four or five years consented to a request in regard to bracket creep. Thus, many taxpayers will be in a higher tax bracket than inflation warrants. Thus, in giving less than it should on rebates and taking more than it ought to in adjusting the rates, government is squeezing the taxpayer.
Finally, the Bill amends the Customs and Excise Act of 1964 to amend rates of duty on alcoholic drinks, tobacco, etc. In fairness to South Africa's hard-pressed taxpayer, government should end futile and fruitless expenditure, which last year rose to a shocking R62 billion. It should squeeze corrupt officials rather than throttling hard-working taxpayers. Thank you. [Applause.]