Hon House Chairperson, hon Deputy President, honourable executives who are present, hon members, "sanibonani". [I greet you.] The Rates and Monetary Amounts and Amendment of Revenue Laws Amendment Bill of 2012, which was introduced in Parliament on 13 March 2012, deals with the rate changes and other numerical matters and not with the more substantive tax proposals. Together with the rest of the taxation laws amendment Bills for 2012, this legislation will give effect to the tax proposals that were announced by the Minister of Finance in the 2012 Budget.
It is important to make this clear, because I am sure you have listened to the IFP, the most learned so-called hon Dr Oriani-Ambrosini and hon Ross, where they failed to differentiate between what we are debating now, which is the Rates and Monetary Amounts and Amendment of Revenue Laws Amendment Bill, and the tax proposals, which have been dealt with by the Minister during the Budget Speech.
I don't know what hon Dr Oriani-Ambrosini is talking about when referring to unfairness because the reforms are indeed intended to improve fairness in the tax system and ensure that the income from capital is taxed more appropriately. Proposals are advanced to support small businesses and to encourage household savings. Personal income tax provides a foundation for an equitable, progressive tax system to ensure that the direct personal income tax burden on individuals remains reasonable. Personal income tax brackets and rebates are adjusted to take account of inflation or "bracket creep", as well as to provide the limited real tax relief.
Studies have repeatedly shown that the best way to promote savings is to provide salary relief so that average workers have the discretionary funds to save. This relief for working employees has the added benefit of alleviating the wage burden on employers. Personal income tax relief should indirectly reduce the pressure on wage increases because taxpayers will have a greater level of after-tax income.
Governments all over the world recognise that small businesses are economically very important. The ANC-led government continues to recognise the importance of small business as an engine for wealth and job creation. To achieve the objectives of economic growth through competitiveness, on the one hand, and employment generation and income redistribution as a result of this growth on the other, South Africa's small, medium and micro enterprises, SMMEs, economy has been actively promoted since 1995. Over the last few years, the growth in employment by SMMEs in South Africa has exceeded the growth in their contribution to the gross domestic product,