Chairperson, hon Minister, the ACDP shares concerns expressed during the Finance Committee's deliberations that the tax laws are becoming more and more complex with all the amendments, and that some sort of consolidation or simplification is required. Although I have studied tax law, I still find legislation complex, and understand how other MPs, let alone your normal, average citizens, would also struggle to follow the amendments. One of the key issues I do understand relates to tax rates and the thresholds for individuals. Minister, it is commendable, given the budgetary constraints, that personal income tax relief amounted to R6,5 billion, albeit that this relief will basically address inflation and the fiscal drag.
The ACDP also supports the voluntary disclosure programme and trusts that defaulting taxpayers will make use of this opportunity to bring their tax affairs into order. This programme will run from 1 November 2010 to 31 October 2011, with the penalties and some, or all, of the interest being waived. Sars, as we understand, will also not pursue any criminal prosecutions during this time.
Minister, as we are dealing with tax issues, would you care to comment on reports that the budget deficit for the year may be far less than the level estimated in your February Budget Speech? This is if the current trend of a 23% increase in government revenue between April and July this year compared to last year continues, which is almost twice the 12,3% growth projected in your Budget.
On the other hand, we understand that slowing economic growth will also reduce revenue and the public sector wage increases will no doubt boost government expenditure. But overall, do you expect the budget deficit to be less than the projected 6,2% of GDP, or is it still too early to speculate on this issue? Clearly, if it is less, this would buck the global trend for increasing budget deficits.
Lastly, hon Minister, the ACDP wishes to commend Sars on tightening up on revenue collection, and we will support these Bills. I thank you.