Mixed reaction to tax policy review

Thursday, February 14, 2013

Cape Town – A number of MPs mostly welcomed President Jacob Zuma’s announcement  that the Minister of Finance Pravin Gordhan would carry out a review later this year of the country’s tax policies  - while others also expressed concern.  

The DA’s Tim Harris said the party welcomed Zuma’s announcement that a review would commence later this year of the country’s tax policies and added that he had some ideas of how taxes could be reformed.

However, Harris was concerned that the inclusion of the current mining royalties regime might see increased taxes in the mining sector.

“I think when you look at the massive drop-off in the mining sector, raising taxes is not a good idea right now. It will only serve to make us less attractive to investors as a destination in the mining sector,” he said.  

ACDP leader Reverend Kenneth Meshoe was also concerned about the review, and that it would create uncertainty for investors.

While there was mixed reaction from political parties over Zuma’s State of the Nation Address, UDM leader Bantu Holomisa welcomed the announcement  that the Justice, Crime Prevention and Security Cluster will put measures in place, immediately, to ensure that any incidents of violent protests are acted upon, investigated and prosecuted.

“But I hope that he (Zuma) will talk to his government ministers and councillors and mayors  to make sure that these issues that people are raising, will be attended to,” he said.

Justice and Constitutional Development Minister Jeff Radebe said that the authority of the state was at stake when people went on strike without facing the consequences of their actions if they broke the law.

Cosatu General Secretary Zwelinzima Vavi welcomed the President’s report back on infrastructure programmes that government announced last year.

“We welcome the feedback on infrastructure - in particular human infrastructure, dams, roads, electricity. All that is good stuff. We like the whole idea of expanding our ports and rail. It is crucial going forward.”

Commenting on the youth wage subsidy, Vavi said: “We like the settlement of the whole debate on youth wage subsidy and also there was no mentioning of the youth wage subsidy as part of interventions to youth unemployment. That’s very good.”

With regard to infrastructure expansion, while there were many instances where work had started, Public Enterprises Minister Malusi Gigaba acknowledged that there were instances where there had been some delays.

“Yes there are instances where we have experienced some delays. The President emphasised that we will concentrate on integration and coordination. We are quite satisfied however that a good start has been made.”

However, coordination and integration would see infrastructural development being speeded up, he said. – SAnews.gov.za