Hon Chairperson, hon members, thank you for this opportunity. Our Constitution forms a sound basis for the way we must conduct government business and must account to our people - a Constitution that has been built over 15 years to improve the lives of our people. As legislators we, at all times and on an ongoing basis, review current and past legislation to improve the lives of our people, specifically our poor people. We must at all times act in the interests of our people, and we have to reduce the divide between the rich and the poor and socioeconomic inequalities.
I present the report of the Select Committee on Finance and Appropriations with regard to the proposed changes contained in the Taxation Laws Amendment Bills, 2009. The objective of the 2009 Taxation Laws Amendment Bills is to give expression and meaning to the tax measures and other aspects of the fiscal framework meant to provide and consolidate the strong base for our economy to remain resilient in the current global financial downturn. The Bill is therefore in line with the objectives of streamlining fragmented taxation laws inherited pre-1994.
The Bill seeks to enhance and protect the competitive edge of the South African economy in the global economic environment and to reduce leakages in the system; to maximise revenue collection locally and internationally from companies and individuals trading or doing business with South Africa; and to fast-track economic integration and stimulate growth.
In deliberating on the Bill the select committee considered the following challenges: how the proposed amendments will improve or benefit the lives of ordinary people, our citizens; the impact of the current global financial downturn and its impact on job creation or job losses; the implications and impact of revenue deficit under collections; and the overall implications of all these challenges in terms of the priorities of government.
The Select Committee on Finance and Appropriations did not have time to conduct public hearings as we received a briefing by Treasury on 16 September 2009, and I had to report to this House on 17 September 2009. I am of the view that we must hear the voice of our ordinary people and small business, and Parliament and the select committee must devise means and mechanisms to make this matter and other related issues more interesting to society as a whole.
The select committee is of the view that the overall thrust of the proposed amendments does complement the stimulus package government has put forward in response to the national framework agreement. We must also commend the pre-emptive and proactive steps the former Minister of Finance, hon Trevor Manuel, took in February 2009 when he made personal income tax adjustments that resulted in R13,5 billion tax relief for individuals.
Most importantly, the new treatment of lump sum withdrawals of retirement savings must not serve as a perverse incentive for workers to withdraw their much-needed retirement savings for the future. The draft Bill will also play a serious and mitigating role in the short term to assist families in rearranging their lives.
It is also the responsibility of all role-players to act in a manner that suggests that we are all appreciative of these challenges. We call on employers not to go the easy way and resort to retrenchments. Throwing workers out on the street will not solve all company problems. You actually create a social problem. For example, employers can have shorter working weeks and have shorter shifts and look into cost-cutting initiatives other than retrenchments.
With regard to the film industry, we agree that further consultation is needed. We then recommend to this House that the proposed Taxation Laws Amendment Bill of 2009 be supported by the House. I thank you.
Debate concluded.
Taxation Laws Amendment Bill agreed to in accordance with section 75 of the Constitution.
Taxation Laws Second Amendment Bill agreed to in accordance with section 75 of the Constitution.