Somlomo, Sekela-Mongameli, Baphathiswa, malungu ale Ndlu, ndimi apha egameni lombutho wesizwe ndiza kuphosa ndigibisela malunga noMthetho woXabangelo ojengene nerhafu. Ndiqwalasele ke ngqo kuluntu nakugcino-mali, imisebenzi kunye noshishino. Mandigawule ndiwarhuqa ke ngenxa yexesha.
Lo Mthetho uYilwayo weRhafu wathunyelwa kule komiti ijongene nezimali ukufumana izimvo zoluntu ngoMeyi kulo nyaka umiyo. Siyile komiti ke sabulela ngokungazenzisiyo kubo bonke abathabatha inxaxheba ngokusinika izimvo zabo ngalo Mthetho uYilwayo. Ngokunjalo, sabulela ngokungazenzisiyo kuMphathiswa, uNongxowa weli lizwe, umfo ka Gordhan, kunye nabasebenzi be- ofisi yakhe nakubaqokeleli berhafu, i-SA Revenue Service, Sars, ngomsebenzi omkhulu abawenzileyo ngokusinika iimpendulo ezicace gca okwekati emhlophe ehlungwini kwimibono esiyifumene ngexesha lofuno-zimvo zoluntu. Ezi mpendulo ziye zasincedisa ekubeni sikwazi ukuthethisana saza safikelela ekugqibeleni kwalo mcimbi singawo namhlaje.
Singombutho we-ANC ke sibona kufanelekile ukuba siwuxhase lo Mthetho uYilwayo, kuba ubaluleke kakhulu ukuze siqhubeke nokutshintsha isebe lethu lezerhafu. Olu tshintsho luza kusincedisa sikwazi ukuqinisa ezorhwebo jikelele nokuxhasa siphinde siqinise ukukhula kwezophuhliso kwixesha elizayo. Oku sikwenzela ukuba sikhulise irhafu yesizwe siphinde sijonge nezinye iindlela zokukhulisa ingxowa yesizwe, mfo kaTrollip.
Sithethisana ke ngalo olu tshintsho lwerhafu, masikhumbule ukuba siqala inyanga apho sibhiyozela khona amasiko nenkcubeko yethu. Isihloko salo nyaka ke nje ngoko nisazi sithi: Living out the values of a just and caring society. Esi sihloko salo nyaka sivumelana notshintsho lwerhafu lwanamhlanje. Akubonakali ke ukuba singakwazi ukuba sakhe ithemba lesizwe esikhathalelanayo ngaphandle kwendlela elungileyo yoqokelelo lwerhafu. Ubuntu bethu njengabantu besizwe sama-Afrika buthi masikhathalelane. Busifundisa le nto yokuba umntu mgumntu ngomnye umntu. Ngoko ke kubalulekile ukuba sisisizwe esikhulayo sakhele phezu kweziseko zokukhathalelana. Kubalulekile ke ukuba singabahlali sivuselelane siphinde sibambisane ukwakha ilizwe lethu. Le nto ke ibonakaliswe kukuzimisela ekuhlawuleni iirhafu kwabantu bakuthi ngexesha elililo. (Translation of isiXhosa paragraphs follows.)
[Dr Z LUYENGE: Hon Speaker, hon Deputy President, Ministers, members of this House, I am standing here on behalf of the people's party, and I shall comment regarding the Taxation Laws Amendment Bill. I am focussing directly on the public and savings, jobs and industry. Let me briefly continue because of time constraints.
This Bill on taxation laws was sent to the committee dealing with finances in order to get public opinion in May this year. As members of this committee we were very grateful to all those who participated by giving us their opinions regarding this Bill. In addition, we were very grateful to the Minister, who is the national treasurer, Mr Gordhan, and the employees in his office and tax collectors, Sars, for the diligent work they have done, which is to provide us with crystal clear answers regarding the opinions we received during the public hearings. These answers helped us to deliberate and eventually finalise this issue we are discussing today.
The ANC deems it right to support this Bill, because it is very important and will allow us to proceed with the transformation of our tax laws. This transformation will not only help us to strengthen trade in general, but also to increase development in future. We are doing this in order to increase the national tax coffers and we are also looking at various ways to boost those, Mr Trollip.
Whilst addressing transformation in taxation laws, let us remember that we are at the beginning of the month in which we celebrate our traditions and culture. The theme, as you know, for this year's celebrations is: Living out the values of a just and caring society. This year's theme is in line with the transformation of tax laws happening nowadays. Therefore, we cannot build the hope of a caring nation without the effective collection of taxes. Ubuntu, as an African nation, requires us to care for each other. Ubuntu inculcates the value that I am because you are. It is important, therefore, that as a developing nation we build upon a caring foundation. It is important that, as a community we motivate one another and work together to build our country. This has been shown by the commitment of our people to paying their taxes in time.]
Among other aspects that the Bill addresses, are those which contribute towards the economic growth value chain such as individual and business taxpayers, savings mechanisms and employment. These will have to be welcomed and commended as they will both directly and indirectly contribute towards the achievement of our priority goals as the ANC, in particular, the creation of decent work and sustainable livelihoods. The ANC views tax evasion and avoidance, not only as a crime, but also as a basis of building a culture of corruption in our society.
In the main, the Bill's proposal seeks to tighten the rules relating to employer-provided motor vehicles with the aim of preventing tax arbitrage; promote uniformity and avoid duplication in the implementation of the retirement and pre-retirement withdrawal benefits by making the employer- provided lump sum termination payout part of the tax preferred calculation; tighten the deduction criteria for key insurance plans, which are commonly funded by employers, in order to eliminate tax avoidance by expanding the deduction allowance for insurance policies that act as commercial collateral or payment to third party business creditors; narrow the permissible instruments in the implementation of the interest exemption threshold and review its effectiveness as an incentive intended to promote savings by middle- and lower-income households.
It also seeks to place certain Shari'a compliant products such as Murabaha and Diminishing Musharaka on an equal tax footing with conventional finance products; as well as to close the loopholes relating to financial institutions that are deducting beyond what should be equitably allowed to the basic tax principles when implementing laws dealing with interest expense allocations.
It is also to the credit of our democratic parliamentary processes that a number of changes have been made to some of these original proposals as a result of the comments and inputs received during the public hearings.
Due to the following responses from the Ministry and Sars, changes were made to the draft legislation in the following areas: employer-provided motor vehicles; narrowing of the interest exemption threshold; interest expense allocation; as well as the termination of the residential entities.
The original proposals on the narrowing of the interest rate exemption threshold and the anti-avoidance amendment relating to the interest expense allocation have both been withdrawn. This is as a result of consideration of the motivations from the public comments received by the committee. The acceptance of these comments and inputs from the public, and effecting changes, as a result, shows that indeed we are a people-centred Parliament and that we take our democratic processes seriously.
Allow me to conclude by saying that it is also important to note the enormous benefits that the proposals contained in this Bill will bring to individual taxpayers, business and the economy as a whole. In particular, we are happy that the proposal to promote uniformity and avoid duplication in the implementation of the retirement and pre-retirement withdrawal pension benefit has been concluded. This will ensure that the employer- provided lump sum termination payout forms part of the tax preferred calculation. This will benefit those who are faced with retrenchment. It will be extra relief for these workers as it has the potential to bring extra needed cash in hand to cater for their immediate economic needs.
Our historic trend in tax collection over the last few years has been the lowering of personal taxes, bringing relief to low-income groups, whilst at the same time managing to broaden our tax base through better collection methods. Credit in this regard has to go to the Ministry of Finance under the leadership of hon Minister Pravin Gordhan and the SA Revenue Service for continuously improving tax collection in this country.
Mandiyicacise ke le nto ithi olu xabangelo luqondene ngqo nabantu bakuthi abangathathi ntweni ngoba lo rhulumente siwuthathe kwizirhulumente ezingaphambili ezazingahoyanga mntu. Ukuba ungajonga, abantu abaza kuthi bafumane apha ngabona bantu bangathathi ntweni. Abona bantu baza kuxhamla, xa unokujonga umise umnqwazi womsuthu kakuhle, aph' ezantsi ngabona bantu baza kufumana kakhulu. Ukuya phaya phezulu kwaba banezinto iye inzuzo isibancinane, ngoba irhafu iye ifudumala ngokuya unyuka.
Uthi ke lo Mthetho uYilwayo kwaba bantu bangathi bafumane udendo - nokuba lungenzeka kusasa - ukuba nje ukhe wapasiswa, oza kufumana isambuku-mali sama-R300 000 uyifumana nje felefele kungatsalwanga nesenti ngurhulumemente okhokelwa yi-ANC. [Kwaqhwatywa.] Kanti xa uqala apha kulamakhulu ama- R301 000 uye kuma-R600 000 abo ngabo noko ngathi bafudumele, bona ke bathi barhume i-18 lee pesenti, nto leyo ibingaqhelekanga. Yayingabonabona babulaleka kakhulu. Loo nto ithethe ukuba, Mphathiswa uPandor, siza kubaleka ngezantya singamalungu ale Ndlu siqhwaba izandla sisithi zange siwubone uMthetho-sihlomelo oYilwayo othandwa ngumntu wonke ngokungathi yimali, ngoba ungemali.
Sivene namaqela aphikisayo kulaa komiti ukuba lo umthetho ufike ngelona- lona xesha lilungiselelwe ukuba kulungiselelwe abantu bakuthi yile Palamente ekhululeke neyenza umsebenzi ngendlela ephum' izandla. Manditsho ke ndithi maz' enethole. [Kwaqwatywa.] (Translation of isiXhosa paragraphs follows.) [Let me explain clearly that this amendment is directed at our people, who are very poor because this government took over from previous governments who did not care for anyone. If you consider the Bill carefully you will discover that the people who benefit are the poor people. The low-income groups are the people who will benefit. The benefits are reduced as you go higher in the income brackets, but the tax increases.
This Bill is saying to those people who are about to be retrenched - even if it is done tomorrow - if the Bill is passed: To those who will be getting a lump sum, it will not be liable for tax. The ANC-led government will not deduct a cent from that payout. [Applause.] However, if you are getting from R301 000 to R600 000, those who are well off, will contribute 18%, which is something unusual. These used to be the ones who were suffering because of tax burden. This means, hon Minister Pandor, as members of the this House, we are going to jump and applaud, saying we have never experienced an amending Bill that is as popular with everyone as money, because it is about money.
We agreed with the opposition parties in the committee that this Act is promulgated at the right time for this liberated Parliament; that is working effectively, to provide for our people. Thank you. [Applause.]]