Thank you very much, Deputy Speaker. Let me also thank members for their contributions.
The three pieces of legislation that this House is considering today give legislative effect to most of the tax proposals announced in the Budget Review that we tabled earlier this year.
These Bills were released for public comment on 17 July, after we had concluded our Budget Vote deliberations. National Treasury and Sars briefed the Standing Committee on Finance on the Bills on 30 July, and the committee had responses from the public at hearings that were held on 26 and 27 August. National Treasury and Sars also made a final report back to the committee on 15 October and the Bills were introduced to Parliament on 22 October when we tabled our Medium-Term Budget Policy Statement.
The Rates and Monitory Amounts and Amendment of Revenue Laws Bill, 2014, which is the rates Bill, specifically deals with proposed changes to the rates and monetary thresholds pertaining to income tax, and to changes in customs and excise duties. The Taxation Laws Amendment Bill deals more with legislative substantive tax proposals, and the Tax Administration Laws Amendment Bill, 2014, deals with changes to the administration provisions of tax legislation currently administered by Sars.
Deputy Speaker, I do not want to go into detail because most members have actually heard this and I have outlined the process that has unfolded. The committee has also had the opportunity to deal with most of the issues that members have raised here. However, let me touch on a few issues that those members have raised, which they did not raise in the committee because they had perhaps not happened.
Dr George talked about the downgrade due to growth weakness. While pessimists will actually look at a glass that has half its contents as half empty, and optimists will look at it as half full, the realists among us and in this government will say it needs a refill, and that is why we are doing something about it.
He talked about cadre deployment as being the reason for the poor and weak growth, when he himself is a deployed cadre of his organisation, deployed here in Parliament. [Interjections.] And they have deployed a number of them, including his predecessor, who is now a deployed cadre, also here in Cape Town. [Interjections.]
He complained about the failing state-owned enterprises, and this was further confirmed by that. I say again that you will see the glass as half empty, while realists will see it as needing action. It needs a refill, and that is what we are doing.
He says we cannot increase revenue through the sale of noncore assets. I mean, because we said we would increase revenue through the sale of noncore assets, he is already salivating and he wants to know which ones. [Interjections.] He wants to know which ones. We did tell the committee - we explained to the committee - that we were working on this project, and we would come back to Parliament when the time was opportune. However, he is in a hurry. This might be because he is serving his own interests. [Interjections.]
With regard to the issue of base erosion, a number of members actually dealt with this. As we know, the Davis Tax Committee is also going to be submitting proposals in this regard, and we will deal with them when the time is opportune. We trust that members will also engage with the matter when it comes before Parliament, instead of mentioning untested numbers here, saying that they think this much is what the fiscus is losing as a result of transfer pricing and base erosion in general. That will be dealt with before this Parliament at the right time.
We also heard that one of the issues that Dr George was raising was the issue of retirement reforms. We have come before this Parliament and we have explained what is being done. We have said that the reason why there is a postponement is precisely because we have listened to the issues that were raised. Until such time as we have cleared up this confusion, we will not implement anything, but it is only a matter of time until we do so.
The fact of the matter is that government does not intend to take certain actions, and it's amazing that this has come up here again. I thought it had been explained that government had no intention of nationalising the funds, or digging into people's retirement funds. We are promoting savings through portability and preservation, but also through making sure that people are able to annuitise their retirement annuities. It's a postponement that was warranted because we had this engagement.
Then there is the issue that was raised by Cope, which was the increases in income tax rebates, which stand at 5,3%. This is less than inflation. I think you must look at the broader picture. One of the members here - I would imagine it was hon Mr Swart - said that the accommodation of fiscal drag amounted to R9,3 billion when we tabled our Budget this year. This, in a sense, means that we have compensated for that. So you should take this in its totality. It's not just the 5,3%. You should also look at how we have dealt with the issue of fiscal drag in regard to the R9,3 billion that was allocated to a number of taxpayers. This tax relief compensates for the effects of inflation, which push some individuals into higher brackets, as I have explained, and this reduces their purchasing power. Therefore, the personal income tax bracket rebates have been adjusted, providing individuals with the R9,3 billion I have referred to.
Our personal income tax system continues to be progressive and redistributive by design. About 69% of taxpayers have taxable incomes below R250 000 per year, and they will receive an estimated 39% of the total amount of this tax relief. Hon members, remember that the 2,4%, the estimated 6,4 million individual taxpayers with a taxable income greater than R1 million, will account for 30,7% of personal income tax.
A number of these changes are intended to continue on the path of making sure that whilst we want to enhance our revenue and whilst we want to grow our tax base, we will continue to reduce the tax burden.
I therefore again, hon Deputy Speaker, want to submit to the House that these changes are intended for nothing other than making sure that we give effect to what the House approved when we tabled our Budget and when we dealt with our Budget Votes. I also submit, hon Deputy Speaker, that it is important for the House to approve these pieces of legislation in the interests of all. Thank you very much. [Applause.]
Debate concluded.