Hon Chairperson, hon Deputy President of the Republic, hon Ministers and Deputy Ministers, in particular Minister Pravin Gordhan and Deputy Minister Nhlanhla Nene; hon members, comrades and distinguished guests, the Rates and Monetary Amounts and Amendment of Revenue Laws Bill 2012 was introduced in Parliament on 13 March, together with the rest of the taxation laws amendment Bills for 2012. This legislation gives effect to the tax proposals announced by the Minister of Finance in the Budget Review of 2012, tabled in this House on 22 February this year. It is therefore my great honour and pleasure to stand before this House to deliberate and report back, as well as make recommendations on the Bill.
When the Minister tabled the budget and tax proposals earlier this year, he also reminded this august House that the global economic uncertainty will remain with us for a longer time to come. He also said that tax proposals before us seek to strike a balance between protecting the fiscus and raising revenue so that we can realise our social and economic infrastructure spend, to grow our economy, create decent jobs and narrow the growing distance between the poor and the rich.
Hon Minister, your predictions remain true and relevant to this day because, as matters stand at the moment throughout the world, large and small economies have come to realise that taxation or revenue collection is but the key and critical element that determines the independence or sovereignty of every state because it is through the budget that the aspirations of every citizen can be realised. Therefore, as we always say, a budget is nothing other than an expression of a political will and commitment to address the challenges of society at hand. It is through taxes that governments are able to meet their co-objectives and to promote the welfare of each nation.
The Bill, in a way, hon members, continues to tell a remarkable story of revenue collections under constraint and economic global conditions not of our own choice, since 2008. It is a remarkable story of good and extraordinary performance by the SA Revenue Service, Sars, a story of economic resilience that continues to weather the storm buffeting major nations - some of which are our own trading partners and major trading partners for that matter, such as Europe and the entire globe.
It is the proud story of our government's careful approach and implementation of a prudent fiscal policy supported by a strong and emerging culture of tax compliance by many South Africans who continue to pay their dues to support the nation. Chairperson and hon members, these, to me, should be compelling reasons for us to appreciate the proposed changes in the Bill.
The Deputy Minister of Finance always reminds us that almost every single South African makes a contribution to the fiscus; be it through income tax or earnings; capital gains or interest; value-added tax when a child buys sweets; the fuel levy when we fill up our vehicles; or many other tax instruments designed to ensure that we all share the responsibility of our country's future. It is the shared responsibility that contributes to our fiscal strength and stability, year after year.
Hon members, revenue correlates strongly with shifts in gross domestic product, GDP, and economic activity. Therefore, with this Bill, we seek to strike the balance between the fiscus and revenue, to achieve a better life for all, working together with the masses of our country to improve service delivery, eradicate poverty and eliminate socioeconomic inequalities in our society.
The tax statistics show that the impact of global recession on the South African fiscus amounted to an estimated R255 billion for the period 2008 to 2011. As Commissioner Magashula would always say to us in our committee, and I quote, "It is said that the definition of statistics is a science of producing unreliable facts from reliable figures."
Therefore, I would not want to bore you with the statistics. Let me return to the Rates and Monetary Amounts and Amendment of Revenue Laws Amendment Bill, whose main thrust is the upward adjustment in personal income tax. Hon members, when we think of taxation in most instances, we think it is a very terrible, mundane subject. In reality, it is like life, and that is what makes it fascinating because life is complex and exciting.
If you know the position that a person assumes on taxes, you can tell their whole philosophy of life. Once you get to know the tax code - it embodies all the life of either great politics or goodness or charity - you would realise that everything is covered in the code. That is why it is so hard to get a simplified tax code because, just like life, it is not simple.
Chairperson, we must commend Commissioner Magashule and his team for steadily turning around the negative attitude of taxpayers, which has now resulted in tremendous growth in tax compliance in this country.
Statistics also reveal that there is growing gender equality in the workplace. The number of female taxpayers assessed grew by 163 000, or 9,5%, between 2007 and 2010 compared to an increase of only 44 000, or 1,5% of males. I think it shows that there is some economic progress in the field of gender transformation.
However, it remains a matter of serious concern that, currently, the biggest burden of personal income is being placed on taxpayers with taxable income in excess of R400 000 per annum, which constitutes only less than 10% of taxpayers but ended up being liable for almost 54,2% of the assessed tax for the year 2010. Hon members, the statistics also tell a story of real tax relief for the South African taxpayers over the past few years. Of the R94 billion in tax relief for individuals granted over the past decade, the bigger portion of this tax relief has benefited the lower and middle income earners and has provided a major inflationary relief for the poor.
The Bill before us continues with being pro poor and lower income groups, in terms of taxation. The Bill also reflects, most importantly, on the small business corporation. It is an important amendment that we are supposed to support, for it is in the small business corporation that we can stimulate entrepreneurship, development and job-creation initiatives.
The dividend tax policy is separating the company financials from shareholders, and this separation of company tax from dividend tax falls in line with the international practices to enforce double taxation agreements we have entered into with other countries. Furthermore, the dividend tax is a true reflection of shareholders' profits. Hon members and Chairperson, the ANC supports the Rates and Monetary Amounts and Amendment of Revenue Laws Amendment Bill 2012. I thank you. [Applause.]