Hon Speaker, hon Ministers and hon members, as well as guests, let me indicate that since its inception our developmental state has intervened decisively in the economy with a progressive agenda meant to tackle the triple challenge of poverty, inequality and unemployment. At the centre of all these interventions is the clarion call that "the people shall share in South Africa's wealth!"
Hitherto, this task has been performed with great success through fiscal policy, mainly through progressive and redistributive taxation. As confirmation of the testimony by the masses of our people to the effectiveness of our taxation system, the World Bank's recently released report on our country's economic update confirms that much progress has been made since the end of apartheid in 1994. Amongst other things, this report attributes progress to tax used as part of a development programme to alleviate poverty and inequality.
Acknowledging that taxes on their own are not adequate to address the challenges at hand, it is of concern that current taxation amendments take place under difficult economic conditions, putting more pressure on taxation decisions.
Prospects continue to be for a slow, uneven and fragile strengthening of the global recovery. Locally, growth momentum has faded progressively since 2011. Domestic factors, particularly industrial action and constraints related to electricity and transport infrastructure, as well as skills shortages, have played a major part in the economy's lacklustre performance.
In order to comfortably navigate this economic environment of limited choices, the three Bills presented to the House give effect to the most appropriate amendments.
The Rates Bill gives effect to the tax rates and monetary threshold changes announced in the budget, relating to income tax, customs duties and excise duties. It enacts tax proposals that take effect on 1 April of every year and deals with numerical adjustments. I must indicate that this Bill does not deal with new substantive changes in our law.
The Taxation Laws Amendment Bill gives effect to the tax proposals contained in Chapter 4 and Annexure C of the Budget, and deals with more substantive changes to the tax law. Changes to the tax law normally take effect in the year following that in which the Bill has been passed into law. The Tax Administration Laws Amendment Bill enacts the administrative proposals contained in the Budget Review.
The main legislative amendments this year include, amongst others, firstly, legislative changes to allow for the introduction of tax-free savings accounts, which will go a long way in promoting the much required culture of saving in our country. Secondly, there is an extension to the effective date of the retirement reform proposals, from 1 March 2015 to 1 March 2016. Although we agreed that these reforms were relevant, recent public reactions have necessitated the extension. Our democratic and caring government should at all times listen to its constituents.
Thirdly, there is aligning the taxation of company cars across all industries - this will enhance opportunities for the realisation of equal treatment among taxpayers. This is a very basic tax principle.
Fourthly, there are the refinements to the excessive interest limitation rules for companies. Inter alia, this will amplify our efforts to combat transfer pricing, a buzz concept used as a mantra by some in this House as they strive to deal with their political identity deficiency problem.
Fifthly, there is improving certainty and clarity in relation to the research and development tax incentive and the special economic zone tax initiative.
Sixthly, there are increases in the thresholds for participants in the venture capital company regime. The seventh is an extension to the potential removal of the value-added tax zero rating of the supply of certain intermediate agricultural and farming supplies. This is meant to eliminate the rampant abuse of this provision by some unpatriotic farmers which has been observed.
Finally, there is the removal of the notional input VAT that may be claimed by VAT vendors when purchasing precious metals from non-VAT vendors. This change is meant to discourage accrual of the fraudulent input tax deduction currently prevalent as a result of this provision.
Indeed, our responsibility to act in unity, duty-bound to protect the livelihoods of the poor and enhance the welfare of our people with care and forethought, is greater than ever. Hence our submission that the House approves these three Bills.
Ke a leboga, Mmusakgotla. [Thank you, Chairperson.] [Applause.]
Hon Speaker, last week our sovereign debt rating was downgraded again. The primary reason is our low growth prospects resulting from structural weaknesses in our economy. One more downgrade will place us on the verge of junk status, where institutional investors cannot invest in our economy because their mandates will not allow them. This is an extremely serious state of affairs and there must be decisive action to avert the economic crisis that we can already see coming down the track.
The Taxation Laws Amendment Bill reflects government economic policy in the collection of revenue. The current macroeconomic picture is dismal. Expenditure exceeds revenue and the deficit continues to widen. Government has lost control over consumption expenditure and is unable to restrain it now.
The public sector wage bill continues its upward spiral without improvements to service delivery. This has resulted from the cadre deployment policy that places incapable politically connected cronies in senior positions at inflated salaries and bonuses.
The cost of social security continues to rise because our economy isn't growing and results in more people entering the social security net and few exiting. A stronger economy would result in fewer people in the social security net and enable government to provide more support to vulnerable members of our society than it does now.
Government has wasted billions of the people's money on failing state-owned enterprises that operate on the so-called corporatisation model. This enables deployed cadres to occupy senior positions, pay themselves hugely inflated salaries and not deliver - without any consequence. Eskom has recently demonstrated that a mismanaged state enterprise can literally collapse.
In addition, at least R30 billion leaks from the public financial system every year in the form of corrupt and fruitless and wasteful expenditure - without any consequence. Now that the money has run out, there is nowhere to hide. The Minister has already said that we face tax increases next year to fund this mismanagement of our economy.
The most significant implication of this Bill for individuals is in regard to retirement savings. Given that government has run out of the people's money to fund its mismanagement of our economy, there is no doubt that retirement fund cash cows will be considered a very lucrative source of additional revenue. This contradicts government's stated policy to encourage domestic savings and investment in our economy. We will oppose any attempt to tax hard-earned savings.
Changes to retirement fund tax policy cannot be done piecemeal. Government should clarify its position on social security reform before it rushes into changes that confuse and negatively influence the financial behaviour of retirement fund members. We look forward to more robust consultation before further changes are proposed, and the Minister should clarify what that process is.
Reducing the size of the bloated Cabinet, streamlining the economic Ministries and better financial management to curb wasteful spending would be a better solution to relieve the revenue shortfall.
The Minister has stated that government will increase its revenue from the sale of nonstrategic state assets. What are these assets and when will they be on the market?
The small business and entrepreneurial sectors must be supported to grow our economy. We welcome incentives for venture capital companies and expect far more to be done to encourage this activity. Given that we do not support the fiscal framework and do not support the incoherent economic policy that underlies it, the DA will not support the Taxation Laws Amendment Bill.
The looming economic crisis can be avoided if government climbs out of the ideological hole it has dug for itself, under the misguided belief that it can build a so-called developmental state, which it is obviously incapable of implementing. So this is unlikely, and there remains no political will to implement the National Development Plan either.
The Rates Bill sets out the tax rates for the current financial year. We agree that we must not balance the budget on the backs of the poor. Instead, we must balance it on the backs of the bloated Cabinet and rich deployed cadres who pay themselves enormous salaries and bonuses. [Applause.] We must balance it on the backs of those who waste and steal the people's money without consequence.
In our alternative budget, the DA set out our policy on growing small business. In particular we proposed cash flow assistance through the introduction of a three-year tax loss carry-back for businesses with a turnover of less than R5 million. We also proposed that a tax credit that derives from an assessed loss can be offset against tax payable.
The Bill before us does not even try to address the reality that small business cannot grow without a conducive tax dispensation. The tax rate on small business is too high. The Bill can and should do more to accelerate our economic growth and we will not support it.
The Tax Administration Laws were enacted to govern the relationship between the SA Revenue Service and taxpayers. When a taxpayer disputes with Sars, there is an initial internal process of 36 business days. That is too long. We welcome the removal of the relevant material requirement that has complicated the tax clearance process.
To enable small business to flourish, Sars should establish a dedicated small business centre and amend section 190 on audit provisions. There is no timeline for Sars to complete an audit and this can bankrupt a small business dependent on steady cash flow.
The Bill does not sufficiently balance the tax relationship, especially for small business, and we will not support it. Thank you, Speaker. [Applause.]
Hon Deputy Speaker, in the Standing Committee on Finance the EFF recorded its objection to the Taxation Laws Amendment Bill and all the Bills that are tabled here today. We specifically stated that these Bills do not present adequate programmes and interventions to deal with the phenomenal base erosion of profit shifting and transfer pricing.
When we made that objection, Treasury said that section 50 of the Tax Administration Laws Amendment Bill dealt with that. We illustrated the fact that that section did not deal in any way with these phenomena. It also revealed a lack of sophistication on the part of the ANC government and a lack of understanding of the extent to which these phenomena are robbing South Africa of potential wealth and her tax revenue base.
In the committees here in Parliament the Financial Intelligence Centre deals with far deeper details of how money is stolen from South Africa and transferred to other parts of the world. Even the SA Revenue Service admitted that we have a crisis of transfer pricing and tax avoidance by huge multinational corporations that manipulate the trading system. But there is still not proper sophistication and understanding of the solutions in regard to how we are going to deal with this particular question.
The committee made a resolution that the EFF must prepare a presentation on how these phenomena can be combated. We have been given 10 days to deal with that. We can assure Parliament and the people of South Africa that we are going to provide much more solid and cogent solutions to these problems, because those who have been elected to government are failing to do so. They cannot deal with the simple phenomenon of the manipulation of the trading system. That is one issue.
Minister of Finance, it is not possible for only 20% of your revenue to come from corporations such as mines and banks, whilst there are so many companies existing in South Africa. You get only about R200 billion from that for you to deal with so many socioeconomic developmental issues, the wages of public servants and everything else. You can extract far more than that. You just have to understand how the international trade regime can be interrogated and made to pay adequate taxes here in South Africa.
As things stand it looks like you do not have the necessary capacity, but we are here to help you in regard to those issues. [Laughter.] We are going to be able to give guidance and assist you in that regard.
There are things we are going to do. Part of what must be done is this. We made a public clarion call that we should make transfer pricing illegal.
The Deputy President of the ANC, because he is a beneficiary of transfer pricing in Lonmin, went to the NCOP and said that it was not illegal; it was a moral question. He said that it was not illegal for companies to avoid taxes in South Africa, and go and pay almost zero taxes in Bermuda. Other companies go to other parts of the world where there are no taxes. You have a Deputy President who is a direct beneficiary of tax avoidance practices here in this country and no one seems to be doing anything about it!
But we can assure you that before we deal with those issues in a comprehensive and cogent way, we as the EFF need to say that we cannot agree with all these taxation Bills. This is because the ANC has still failed to understand the complexity of the problem at hand, and it is mostly because it has private individuals in its leadership who are benefiting from these horrible instances. Thank you very much. [Applause.]
Hon Deputy Speaker, whilst we hear and understand the Minister of Finance when he advises that governments everywhere face difficult choices because of the ever-widening gap between what is required and what can be afforded, and further that we have to be steadfast in our resolve to do more together with less, we also understand that our tax base is having every last drop of income squeezed from it. The cost of living is increasing at an alarming rate and this, together with the levels of indebtedness and inflation, is simply making life for the average South African unaffordable.
The Minister of Finance recently said that "we all have to take the pain". We salute his recent series of spending cuts because of the shortfall of tax revenue. But the question remains: What is Treasury doing to ensure that every last cent of tax monies collected is spent with the greatest prudence, ensuring maximum output with minimum input in terms of the tax rands collected?
We still see violent service delivery protests in many parts of our country. Communities remain without proper sanitation, housing or water.
Electricity supply is on a knife edge, Eskom is a disgrace to the nation, and yet we continue to throw billions of tax rands at it in the hope that it will one day get it right. Hon Deputy Speaker, I submit to you that Eskom will never get it right. We are throwing good money after bad. The Minister of Finance has already said that he will not increase the already heavy burden on the backs of our poor. Is he engaging his counterpart in energy to protect consumers from the looming Eskom price increase?
The recent expulsion of Numsa from Cosatu is a ticking economic time bomb which could easily lead to greater disinvestment, with our economic growth facing a further downturn. Is the Minister focusing on further spending cuts should this happen?
The Taxation Laws Amendment Bill gives effect to the changes proposed in the 2014 budget. It seeks to further entrench the progressive character of our fiscal system, which is not a bad thing. We agree that the wealthy should pay more because they have more. We have a problem, though, with the fiscal creep and its devastating effect on our middle to low income earners. Government must start learning to do more with less and refrain from crippling its fiscal base. The IFP will definitely support this Bill, although we have raised our concerns. Thank you. [Applause.]
Hon Deputy Speaker, the NFP is of the opinion that the three tax-related Bills in their current form are in the best interests of the people of South Africa and the country as a whole.
The following aspects of the Taxation Laws Amendment Bill are noted with particular interest by the NFP. Pertaining to the proposal to remove the VAT zero rating of agricultural inputs, the NFP fully supports the postponement of the proposal to repeal provision for the zero rating of certain agricultural inputs. We are of the opinion that the repeal of the existing provisions will not be in the best interests of the agricultural sector and argue for more effective implementation of the current mechanism legislation to reduce VAT-related fraud in the agricultural sector.
The NFP is in support of the measures introduced in the Bill based on the recommendation by the Davis Tax Committee. These amendments acknowledge and take into consideration the existing role of small business in the economy, as well as government's intention to grow the economy and increase employment through an expansion of the number of small businesses.
In particular the NFP welcomes the revision of small business corporate tax relief and the tax incentives for provision of funding to small, medium and micro enterprises. We firmly believe that small businesses are of crucial importance in order to stem the tide of unemployment in South Africa, and every effort must be made to provide tax relief and incentives to actively grow this sector of the economy.
Pertaining to tax-free savings accounts for individuals, the NFP is pleased that the Taxation Laws Amendment Bill contains a provision for tax-free savings accounts, to which individuals can contribute a maximum of R30 000 per year and R500 000 over their lifetime. The NFP also notes that a degree of flexibility is built into the provision, which we believe will encourage domestic saving, as the funds will not be tied down as in conventional investments. We suggest that the maximum threshold be increased in future to encourage more people to put their money into domestic saving.
The NFP also welcomes the revision of Sharia-compliant financing arrangements, which complements legislation enacted in 2010 and amended in 2011 to recognise certain forms of Islamic finance arrangements. We believe the proposed amendments will facilitate the participation of public entities, that is, state-owned entities, in such arrangements, and is likely to constitute an affordable source of funding for those entities.
The NFP is furthermore in agreement with the amendments as proposed in the Rates and Monetary Amounts and Amendment of Revenue Laws Bill and the Tax Administration Laws Amendment Bill. We are satisfied that the amendments are largely technical in nature, designed to synchronise various provisions in tax-related legislation and accurately reflect the tax proposals contained in the hon Minister of Finance's Budget Speech of 2014.
In conclusion, the NFP is in support of the tax-related Bills presented to this honourable House. I thank you.
Hon Deputy Speaker, hon Ministers and Deputy Ministers, and hon members of this august House, I think it is important for me to put the record straight in relation to the issue that was raised by the hon member from the EFF. Contrary to what the EFF said when they raised the issue of transfer pricing and profit shifting, we asked the hon member of the EFF for concrete views, rather than repeating the same old tired generalities. He said nothing, and we asked him to put the matter in writing and bring that within 10 days. I can say in this House that since we requested that, the hon member has never come to the meetings and I think we cannot allow him to mislead this House.
The ANC government has prioritised entrepreneurship and the advancement of small, medium and micro enterprises as a catalyst for achieving economic growth and development. Key to this has been the implementation of SMME- related policies, to ensure that adequate financial and nonfinancial assistance is provided to the sector, for its long-term prosperity and that of the country as a whole.
Through the commitment of the ANC government to enhancing SMME support, a dedicated department has been established to strengthen support for the small business sector. This commitment is in line with the National Development Plan, that small business is expected to play a vital role, thereby creating 90% of the 11 million jobs by 2030. To achieve the NDP objectives, partnership between government and other organisations is of utmost importance.
Most developing economies have strong informal sectors that draw people into economic activity. South Africa's informal sector has challenges, given the country's size and the level of development, which has been acknowledged by government. Moreover, the broader business environment is characterised by market concentration and relatively high profit margins.
The ANC government remains committed to creating an environment that supports both informal traders and entrepreneurs who seek to develop small businesses into larger enterprises. Red tape and bureaucracy are hindrances to doing business, especially for small and medium-sized firms, and this Amendment Bill aims to streamline the regulatory regime. The proposed reforms would reduce compliance costs and facilitate access to equity finance. The central questions in the debate are, firstly, how the changes to the Taxation Laws Amendment Bill will enhance small, medium and micro enterprises, both in making them sustainable and in enhancing job creation. In addition, how will the Amendment Bill enhance the growth of the SMME sector, which is key to the amendments that are being proposed?
With the creation of the Small Business Development Ministry, which deals with co-operatives, taxation in the Amendment Bill seeks to facilitate progress in the sector and lift any hindrances. The role of small and medium-sized enterprises in job creation and contributing to economic growth in South Africa has been recognised over a number of years. Most small businesses in the country operate, amongst others, in agriculture, trade, transport, tourism and the construction industry.
While small businesses in developed countries contribute around 50% of the gross domestic product, and those in Asia around 40%, in South Africa small businesses contribute only 30% of the GDP. They also contribute 70% to 80% in employment, but less than 4% in export earnings.
The main reasons that prevent small businesses from progressing include, amongst others, the economic environment, the labour regulations, the poor education levels, a lack of management and work skills, a lack of access to working capital and the low outlays for research and development.
A number of measures have been identified in the National Development Plan to promote and support the development of the small business sector. This includes the fact that public-private procurement needs to be improved to provide support to the small business sector. Then there is improved access to equity and debt financing by financial institutions - in this regard development finance institutions have of late begun to focus on servicing this sector. Furthermore, a review of the regulatory environment, including compliance issues such as business regulations, tax, labour regulations and local government regulations is needed, and in this regard the Tax Laws Amendment Bill has begun to address issues that are raised in the NDP. Finally, the assessment of the NDP is that a potential of 90% of new jobs can be created by SMMEs over the next 20 years.
The 2014 Tax Laws Amendment Bill proposes tax relief to small businesses of between R1 million and R20 million. What hon George from the DA was saying is misleading, because small businesses are being considered in this amendment.
This is in line with the recommendation by the Tax Review Committee, which suggested that this tax regime should be retained, but that the requirements should be simplified and the thresholds and tax rates be adjusted. As noted in the 2014 Budget, the Tax Review Committee proposed that turnover of up to R335 000 should be taxed at zero tax rate and the maximum rate be adjusted from the current 6% to 5%.
The Tax Review Committee further concluded that the lower tax rates for small business corporations are not effective. They do little to support the objective of small business growth and do not address tax compliance costs. The current regime provides tax relief for 50 000 businesses and to professions, and not for the originally intended beneficiaries. The ANC government has supported the reduced tax rate regime with an annual refundable tax compliance rebate.
Informed by the Davis Tax Committee, the Amendment Bill incentivises income tax compliance by small business corporations. In terms of the amendment, small business corporations are entitled to a cash rebate of R15 000 on their tax liability where a fixed rate of 28% is used as an income tax rate rather than the current graduated scale.
Payments for the development of SMMEs are to be exempted from income tax. For SMMEs to qualify for exemption they will have to meet the requirements for a micro enterprise. During his 2014 Budget speech, the then Minister of Finance, hon Pravin Gordhan, announced that there would be increased support and tax relief for entrepreneurs and small businesses. These announcements were as a result of the appointment by the Minister of the Davis Tax Committee, under Judge Davis, in July 2013.
The Davis Tax Committee report makes the important point that it is not the task of Sars to build up the SMME sector; it should rather be an instrument that can assist the SMME sector in its obligation to be tax compliant. The report refrains from recommending a blanket tax exemption to small businesses, as it would undermine the objectives of the new Tax Administration Act and potentially result in substantial abuse.
The Amendment Bill aligns itself with the national drive to increase funding in research and development as part of growing the economy. On the revision of the research and development incentive, the definition of "research and development" has been amended to include the costs of clinical trials and the multisource pharmaceutical products as tax- deductible.
As I conclude, hon Speaker ... [Time expired.] Thank you hon Speaker. The ANC supports these amendments.
Hon Deputy Speaker, the road to serfdom is based on government control of economic decision-making via central planning. We can see how central planning in South Africa is eroding economic freedoms and, inevitably, political freedoms. Virtually everything is controlled by government: how we are employed or can be employed, how we may conduct business, how we must think, how we must educate and be educated, and finally where we may go or not via e-toll systems.
Die wegkalwing van ons vryhede is problematies genoeg, maar om dit te sien gebeur met die finansiering van ons eie geld is te veel om net gade te slaan. Daarom gebruik die VF Plus hierdie geleentheid, nie om kommentaar te lewer op die tegniese veranderinge vervat in die string belastingwette nie, maar om die ongeduld van die belastingbetaler te verwoord om 'n politieke stelsel te bly finansier wat inherente vryhede ondermyn. (Translation of Afrikaans paragraph follows.)
[The erosion of our freedoms is problematic enough, but to see this happening with financing from our own money is too much simply to observe. That is why the FF Plus is using this opportunity not to make comment on the technical changes contained in the string of tax laws, but to give expression to the impatience of the taxpayer in continuing to finance a political system that undermines inherent freedoms.]
The Bills contemplated today form part of a system designed to extract the maximum amount from the pockets of the average person, without ensuring any substantial form of quid pro quo from government. The system is highly effective and the average person is compelled to comply, against the risk of criminal sanction. Yet, if we have regard to the system of service delivery by government, there is no criminal sanction that really compels the Public Service to provide quality services. So what we have here is a system designed to put you in jail if you do not pay for the services government is constitutionally obliged to deliver, but where the government and its servants get away scot-free if poor or no services are delivered. No one in government will go to jail, and the height of accountability is a slap on the wrist and the redeployment of the offending public servant to a more lucrative position, subject to the requirement, of course, that the public servant is an ANC-member, better known as a "cadre".
It is this lack of accountability that allows the ANC to say that service delivery protests are not to be taken seriously and do not constitute evidence of unhappy people. It is this system, which allows for cadre- deployment via the instrument of affirmative action, that has virtually destroyed the state's ability to deliver. And this is not something that only we are saying. It is a fact supported by the Public Service Commission.
Die individuele belastingbetaler dra tans, volgens die Tesourie, 34,5% van die belastinglas in Suid-Afrika. Maatskappye se belastinglas is tanend. Dit beteken die ekonomie groei nie en die beleidstukke van die regering werk nie. Ons is dus nou by 'n vurk in die pad.
Indien belastingbetalers, veral uit minderheidsgemeenskappe, nie vinnig beter behandel word nie, sal hulle stelselmatig vanself uit die stelsel begin klim. Dankie, Speaker. (Translation of Afrikaans paragraphs follows.)
[The taxpayer as an individual, according to the Treasury, carries 34,5% of the tax burden in South Africa. The tax burden of companies is dwindling. This means that the economy is not growing and that the policies of the government are not working. So we are now at a fork in the road.
If taxpayers, particularly from minority communities, do not rapidly receive better treatment, they will systematically start climbing out of the system of their own accord. Thank you, Speaker.]
Hon Deputy Speaker, the National Assembly has the constitutional right to impose taxes in order to raise revenue for government. The Amendment Bill before us requires our support, first of all to fix the rates of normal tax. The Bill proposes that the primary rebate be adjusted from the previous amount of R12 080 to R12 726, which equals R646 or 5,34%.
For those who are 65 years of age or older on the last day of the year of assessment, a secondary rebate is allowed. The Bill proposes that the amount be adjusted from R6 750 to R7 110 which comes to R360. Again, this is a 5,3% adjustment. For those who are 75 years of age or older on the last day of the year of assessment, the present tertiary rebate of R2 250 is adjusted to R2 367. This is a 5,2% adjustment and equals R117.
In Cope's view the adjustment in the rebates is marginally less than inflation. With such reduction measures, small as they may be, government will take more from taxpayers than in the previous year. If we look at the recent media reports, it has already done a lot more than what was budgeted for.
For those whose taxable income is in the bracket R272 700 to R377 450, the tax rate will begin at R55 957 and go up by 30% when it is above R272 700. For those whose taxable income is in the bracket R377 450 to R528 000, the tax rate will begin at R87 382 and go up by 35% when it is above that figure.
In respect of the brackets, the National Assembly has over the last four or five years consented to a request in regard to bracket creep. Thus, many taxpayers will be in a higher tax bracket than inflation warrants. Thus, in giving less than it should on rebates and taking more than it ought to in adjusting the rates, government is squeezing the taxpayer.
Finally, the Bill amends the Customs and Excise Act of 1964 to amend rates of duty on alcoholic drinks, tobacco, etc. In fairness to South Africa's hard-pressed taxpayer, government should end futile and fruitless expenditure, which last year rose to a shocking R62 billion. It should squeeze corrupt officials rather than throttling hard-working taxpayers. Thank you. [Applause.]
Hon Deputy Speaker, the former Minister of Finance, Pravin Gordhan, announced the rates and monetary threshold changes during his Budget speech earlier this year, and in so doing granted R9,3 billion in tax relief. Those proposals are being given legislative effect today in the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, and we as the ACDP welcome and support that, as they bring tax relief to individual taxpayers by adjusting the income tax brackets and rebates to compensate for the effects of inflation. Surely that is something that we should all support.
Because we have three Bills here before us, it is quite difficult to know to how to approach them. Let me then say that the key issue of the Taxation Laws Amendment Bill is the postponement of retirement reforms to 1 March 2016, and the postponement of the VAT zero rating of agricultural inputs by 12 months.
The postponement of the retirement reforms is regrettable, hon Minister, although obviously there are reasons for that. We understand there is no consensus at Nedlac. Seemingly, there has been opposition from Cosatu. These delays in our view as the ACDP will aggravate the persistent and untrue rumours that have been circulating about retirement funds. This has resulted in many civil servants, teachers, experienced policemen and nurses resigning, because they are afraid that their pensions are going to be attached, and clearly that is not the case. Therefore, we as the ACDP cannot support this postponement because it is adding to the uncertainty and we need clarity in that regard.
It is also apparent that we are going to have an increase in taxes to be announced in the February budget. We do not know the exact details of that and we look forward to studying the Dennis Davis report.
Cleary we appreciate the fact that a fiscal consolidation path needs to be followed, and that is dependent on economic growth - way above the pedestrian 1,4% that we have at the moment. With any tax reform, one must consider its impact on economic growth. We from the ACDP have clearly and consistently said that we should look at the government expenditure side. As other speakers have said, there is R30 billion's worth of wasteful and irregular expenditure that one can look at. That is an issue we need to look at, rather than tax increases.
Again, much needs to be said about the public sector wage bill. It must come in lower and, Minister, it is obviously a challenge for you. Otherwise, if it doesn't come in lower, we are going to have to either reduce social spending and that on capital budgets, or trim staff numbers.
Minister, last year I raised a concern with the Deputy President about the impact of amendment of section 18A on public benefit organisations. Commentators have indicated that this increased compliance burden will detract from funds. Would you agree to monitor the situation and, should the case of an unintended consequences arise, to relook at that issue?
In view of our reservations as expressed, the ACDP will regrettably not support the latter two Bills, but of course the Rates and Monetary Amounts and Amendment of Revenue Laws Bill we do support. So it is a bit of a challenge when you put all three Bills together. Thank you, Minister.
Hon Deputy Speaker, hon members and fellow South Africans, I think that before I begin with my speech I need to make a distinction between a government and those that aspire to being a government, because these are two different streams.
If you are a government, you are going to be practical. You are going to be looking at the issues before you, applying your mind to them and expressing your purpose, which is to come up with a creative solution to the problems. If you are an aspirant government, you lament as in the case of hon Swart, you lament as in the case of hon George, and you lament as in the case of hon Shivambu. [Interjections.]
Really, let's face the facts. The DA is now saying that we must look at recovering the R30 billion that we are losing through corruption. Obviously we all agree that there is not supposed to be corruption, and we have to fight it. However, how is it going to be possible to recover that in the short term? We have to be practical!
The DA is becoming very populist and is drifting away from practical solutions at a speed faster than lightning. They have become like a broken record. In the face of a collective challenge that we ought to be addressing together as a nation, they are simply lamenting.
On the one hand the DA purports to be supporting the National Development Plan, yet, instead of adding its voice in support of these tax Bills, they are now saying they are not supporting the tax Bills. If you want this National Development Plan to be implemented, why are you not supporting the tax Bills? That is the only way any civilised society can move forward. The ANC, consistent with its principles of open democracy, allows the opposition to make submissions. Hon Shivambu is now telling us that maybe there was something inadequate on our part. [Interjections.]
Hon Shivambu, let me remind you that tax base erosion and profit shifting was first identified by J F Kennedy in 1961. [Interjections.] Let us tell you this. We are also going to tell you what the ANC has done since 1994, because when we came in we identified tax avoidance as a problem and we are going to tell you about that for your own purposes. [Interjections.] I have repeatedly said to you, hon Shivambu, that you should read - it empowers you. [Interjections.]
If you go to the Sars Compliance Programme of 2012-13 to 2016-17, you will see that it identifies seven broad focus areas. One of those is tax avoidance structures, which have inflated deductions through circular flows of money. If this does not deal with that, then what is your understanding of tax base erosion?
The reason that we gave you an opportunity to speak is because we realise that it looks like you have a misplaced understanding ... [Interjections.] ... of what base erosion and profit shifting is. [Interjections.]
I think I should now rather address myself to the citizens of South Africa. In the Business Day of 5 November 2014, Hilary Joffe writes: "Nene can only go so far in taxing the top earners." In the same issue, Amanda Visser, a Pretoria correspondent, warns: "Citizens pay even more tax than firms. The South African tax burden (on individuals) has steadily increased over the past four years ..."
Now, in considering these tax Bills, the ANC has taken into account the views and concerns of citizens. The views expressed by a range of stakeholders and South African citizens have found expression in the tax Bills.
Admittedly the challenges we confront in respect of tax base erosion and profit shifting cannot be viewed outside the digital economy and the increasingly worrying decline in morality of multinational enterprises, who are hellbent on maximising profits by avoiding paying taxes. That is putting a burden on individual citizens and poor households in particular. [Interjections.]
The approach of the ANC on tax issues is as follows - and please listen carefully so that you don't misquote us. [Interjections.] Taxes from both citizens and business enterprises are the only vehicle towards a sovereign, prosperous nation, which is not dependent on foreign aid and can therefore govern itself without fear and be 100% accountable to its citizens. That is our position.
Those who avoid taxes are pursuing an antidevelopment agenda and are undermining the agenda to create an equal society where every citizen has equal opportunities of success.
Therefore, in 2007 the ANC-led government introduced the very comprehensive General Anti-Avoidance Rule, Gaar. This was subsequently incorporated in the income tax of 2007. Therefore, anyone who speaks about tax base erosion and profit shifting as if they have just uncovered a witness in this area are telling lies. I would have expected that hon Shivambu would have known Amlcar Cabral, one of our outstanding intellectuals, who once warned of those who tell lies so that they can claim easy victories. It is within this context that we expose these lies.
Citizens like Joffe and Visser, and many other citizens, are concerned about the implications of our contracting economy and the downgrading of our financial institutions, and therefore the possible and the inevitable, which is raising the shortfall in our fiscus. As the ANC, we demonstrate our commitment to resolving our economic and financial challenges ... [Interjections.] ... together with our citizens.
Deputy Speaker, on a point of order: I think it is unparliamentary to say somebody is lying. She keeps on saying hon Shivambu tells lies. Can you rule on this?
Hon member, you know that is correct. You shouldn't do so.
Hon Deputy Speaker, I quoted Amlcar Cabral. I have not said hon Shivambu is lying. [Interjections.] If that is a lie, then we might even say that Amlcar Cabral was lying and yet I believe that he was correct. The principle is correct. Expose the lies where they occur.
Hon member, we will look at Hansard and if what you say is correct, that will be so. We will make a ruling on this as soon as we finish here.
Hon Deputy Speaker! Hon Deputy Speaker! We can allow her to misquote Amlcar Cabral. There is no offence. I am not offended. She can say whatever she wants to say. We will clarify it later.
Hon Shivambu, don't speak when you are not asked to do so, please. Hon Khoza, proceed.
Thank you very much, hon Deputy Speaker. The tax base erosion and profit shifting are the main immoral practices that the government, together with citizens, must challenge.
The ANC-led government, in the form of former Finance Minister, Pravin Gordhan, was entrusted with the responsibility to chair the Organisation for Economic Co-operation and Development, OECD, tax forum despite the fact that we are a nonmember and have only observer status. The relevance of this gesture from the OECD was that it was in recognition of the South African government's efforts to deal head-on with tax base erosion and profit shifting.
I also need to say that it is really true that companies' income tax has grown from just above R71 billion in the 2004-5 fiscal year to just above R179 billion in the 2013-14 fiscal year. Obviously there must be something that this ruling party is doing right. If we are able to move on from 2004, from the R71 billion to the R179 billion that we have been able to recover from companies, we are obviously doing something right. [Applause.]
The matter of tax base erosion cannot be left to individual countries alone. This is because we are dealing with a digitalised and globalised economy that makes it very difficult for individual countries to address these challenges on their own.
That is why we believe that it has become necessary for South Africans to find ways of raising this and making sure that we take a closer look at those companies and deal with them severely. I refer especially to those that are doing business with the government, because you can't be taking money from the government, while at the same time you are avoiding paying tax. On that score we agree.
I therefore submit that the ANC supports these tax Bills, and we believe that this is the only way we can implement the National Development Plan. I thank you. [Applause.]
Hon Deputy Speaker, may I just reflect briefly on the hon Khoza's remark with regard to members' aspiration to be in government. She is currently in the province that the DA is governing. That's the reality of it all. [Interjections.]
Our tax proposals should encourage economic growth, and our tax laws should reflect government's commitment to economic growth that will reduce inequality, poverty and unemployment. We note the following - and this is the reality, hon Khoza. We can ask whether the governing party is doing a great job or not, and we can find this out just by measuring growth. This has dwindled to 1,4% in terms of our forecast in growth. In 2011 we projected 3,6%.
We have also noted, with caution and concern, that in the Medium-Term Expenditure Framework we can expect a revenue shortfall of R60 billion over this period in the medium term. Per year this would be about R15 billion. We can ask whether this reality is a feather in the cap of the government.
The response from National Treasury to address the revenue shortfall is disappointing. It lacks confidence in respect of restoring our economy, assisting economic growth and accelerating job creation. National Treasury has simply proposed increasing taxes, the details of which, we are informed, will be revealed in the Davis Tax Committee.
These increases are expected to generate R44 billion over the medium term, and that gives you R15 billion per year that needs to be generated. The DA recommended to the Treasury - and the chairperson will remember that I also recommended this in the portfolio committee - that we should treat the tax issue carefully and address corruption and eradicate wasteful expenditure as a viable alternative to increasing taxes. It is with disappointment that I note in the report from the committee that that is not reflected in the report.
We note that according to the Special Investigating Unit we have R30 billion being lost to corruption and waste every year. This is a serious indictment of government.
The budget deficit is expected to be R153 billion in the 2014-15 financial year, and that is the reality in regard to our economic position. Government debt, as a proportion of GDP, is at 46%. But when you include the contingent liabilities, it is 57% and that makes it extremely problematic. We believe that this financial crisis would have been entirely avoidable if the issues of corruption and wasteful expenditure had been properly addressed.
It is clear that positioning the state at the centre of our economy is hampering meaningful growth. The deficit speaks for itself. It is the single biggest threat to our economic prosperity, and managing the deficit effectively has proven very problematic. I think it has been six years that we have been seeing deficits - budget deficits - and it is still continuing.
State-owned entities are bankrupting South Africa and we don't seem to be finding the right solutions and proposals for this in the committee. Eskom alone requires R270 billion to remain afloat. The dependency of the embattled state-owned entities is on the brink of collapse, and looking to National Treasury is doing more harm than good.
Confidence in the South African government's ability to pay back its debt is dwindling, more so with the recent downgrade by Moody's and other foreign investors. You will note that our debt-servicing cost is R114 billion per year. Government will now have to borrow money at higher interest rates, which will increase this number, placing more pressure on the state coffers.
Noting the weak economic growth, I would advise the Minister to focus on averting a tax increase that South African taxpayers simply cannot afford in these economically trying times. The DA will therefore not support the increase in taxes, as it will slow down the economy and further kill jobs.
Chairperson, allow me also to make some brief remarks about issues with regard to the Taxation Laws Amendment Bill which should have been addressed. The first is the uncertainty as to the income tax treatment of the unlisted immovable property entities. The purpose of the Real Estate Investment Trust, Reit, taxation is to provide investors with tax certainty, in order to incentivise the use of property investment companies in line with international best practice.
The former Minister proposed the following in the 2013 Budget Speech, and I am glad that the hon Gordhan is present. Thank you, Minister, for coming here to listen to me today! The Minister proposed in the 2013 Budget Speech that the Reit regime should be extended to unlisted entities as well. This has unfortunately yet to come into effect.
The DA has provided Treasury with submissions to address the problems regarding the Reit legislation, and decisive draft legislation, I believe, is urgently required.
The second issue is with regard to research and development. A recourse mechanism should be urgently introduced in instances where approval was not granted by the Department of Science and Technology. This is because the only recourse available at the moment, when there is a dispute in regard to nonallocation in the case of an innovation, is to launch a high court application. We believe this is too expensive and we should look at the recourse mechanisms.
A definition of innovation should also be included and I believe the committee has referred this to the Department of Science and Technology. It should be included and should acknowledge the intent of stimulating research and development in our developing economy.
In conclusion, I would just like to say that the DA did sterling work in regard to VAT proposals for farmers, that the zero rate be retained there. I thank the committee in that regard. [Time expired.] [Applause.]
Thank you very much, Deputy Speaker. Let me also thank members for their contributions.
The three pieces of legislation that this House is considering today give legislative effect to most of the tax proposals announced in the Budget Review that we tabled earlier this year.
These Bills were released for public comment on 17 July, after we had concluded our Budget Vote deliberations. National Treasury and Sars briefed the Standing Committee on Finance on the Bills on 30 July, and the committee had responses from the public at hearings that were held on 26 and 27 August. National Treasury and Sars also made a final report back to the committee on 15 October and the Bills were introduced to Parliament on 22 October when we tabled our Medium-Term Budget Policy Statement.
The Rates and Monitory Amounts and Amendment of Revenue Laws Bill, 2014, which is the rates Bill, specifically deals with proposed changes to the rates and monetary thresholds pertaining to income tax, and to changes in customs and excise duties. The Taxation Laws Amendment Bill deals more with legislative substantive tax proposals, and the Tax Administration Laws Amendment Bill, 2014, deals with changes to the administration provisions of tax legislation currently administered by Sars.
Deputy Speaker, I do not want to go into detail because most members have actually heard this and I have outlined the process that has unfolded. The committee has also had the opportunity to deal with most of the issues that members have raised here. However, let me touch on a few issues that those members have raised, which they did not raise in the committee because they had perhaps not happened.
Dr George talked about the downgrade due to growth weakness. While pessimists will actually look at a glass that has half its contents as half empty, and optimists will look at it as half full, the realists among us and in this government will say it needs a refill, and that is why we are doing something about it.
He talked about cadre deployment as being the reason for the poor and weak growth, when he himself is a deployed cadre of his organisation, deployed here in Parliament. [Interjections.] And they have deployed a number of them, including his predecessor, who is now a deployed cadre, also here in Cape Town. [Interjections.]
He complained about the failing state-owned enterprises, and this was further confirmed by that. I say again that you will see the glass as half empty, while realists will see it as needing action. It needs a refill, and that is what we are doing.
He says we cannot increase revenue through the sale of noncore assets. I mean, because we said we would increase revenue through the sale of noncore assets, he is already salivating and he wants to know which ones. [Interjections.] He wants to know which ones. We did tell the committee - we explained to the committee - that we were working on this project, and we would come back to Parliament when the time was opportune. However, he is in a hurry. This might be because he is serving his own interests. [Interjections.]
With regard to the issue of base erosion, a number of members actually dealt with this. As we know, the Davis Tax Committee is also going to be submitting proposals in this regard, and we will deal with them when the time is opportune. We trust that members will also engage with the matter when it comes before Parliament, instead of mentioning untested numbers here, saying that they think this much is what the fiscus is losing as a result of transfer pricing and base erosion in general. That will be dealt with before this Parliament at the right time.
We also heard that one of the issues that Dr George was raising was the issue of retirement reforms. We have come before this Parliament and we have explained what is being done. We have said that the reason why there is a postponement is precisely because we have listened to the issues that were raised. Until such time as we have cleared up this confusion, we will not implement anything, but it is only a matter of time until we do so.
The fact of the matter is that government does not intend to take certain actions, and it's amazing that this has come up here again. I thought it had been explained that government had no intention of nationalising the funds, or digging into people's retirement funds. We are promoting savings through portability and preservation, but also through making sure that people are able to annuitise their retirement annuities. It's a postponement that was warranted because we had this engagement.
Then there is the issue that was raised by Cope, which was the increases in income tax rebates, which stand at 5,3%. This is less than inflation. I think you must look at the broader picture. One of the members here - I would imagine it was hon Mr Swart - said that the accommodation of fiscal drag amounted to R9,3 billion when we tabled our Budget this year. This, in a sense, means that we have compensated for that. So you should take this in its totality. It's not just the 5,3%. You should also look at how we have dealt with the issue of fiscal drag in regard to the R9,3 billion that was allocated to a number of taxpayers. This tax relief compensates for the effects of inflation, which push some individuals into higher brackets, as I have explained, and this reduces their purchasing power. Therefore, the personal income tax bracket rebates have been adjusted, providing individuals with the R9,3 billion I have referred to.
Our personal income tax system continues to be progressive and redistributive by design. About 69% of taxpayers have taxable incomes below R250 000 per year, and they will receive an estimated 39% of the total amount of this tax relief. Hon members, remember that the 2,4%, the estimated 6,4 million individual taxpayers with a taxable income greater than R1 million, will account for 30,7% of personal income tax.
A number of these changes are intended to continue on the path of making sure that whilst we want to enhance our revenue and whilst we want to grow our tax base, we will continue to reduce the tax burden.
I therefore again, hon Deputy Speaker, want to submit to the House that these changes are intended for nothing other than making sure that we give effect to what the House approved when we tabled our Budget and when we dealt with our Budget Votes. I also submit, hon Deputy Speaker, that it is important for the House to approve these pieces of legislation in the interests of all. Thank you very much. [Applause.]
Debate concluded.
Are there any objections to the Taxation Laws Amendment Bill being read a first time?
HON MEMBERS: Yes!
Order! There are objections.
Hon Deputy Speaker, may I humbly request to be recognised, sir?
Hon Kwankwa, you may proceed.
May I request you kindly to attend to my note, sir, because my concern is that it would give the impression, if we left it unattended, that we are a party of disorganisation and related activities? Please attend to it, sir. I am listening.
Hon members, I called the UDM earlier on and the hon member is objecting now on the grounds that he had indicated to the Table that they were not participating in the debate. It's not because they were deliberately not being heard and so on. I have done it, sir - are you happy now?
[Inaudible.]
Okay. Let us proceed, hon members.
Question put: That the Taxation Laws Amendment Bill be read a first time.
Division demanded.
Order! The question before the House is: That the Taxation Laws Amendment Bill be read a first time.
Deputy Speaker, for the record, I am not sure whether that is correct. You said that it will be read a first time. Is it the first time or the second time? Can you clarify that?
The second time is coming, sir. You are in a hurry! [Interjections.] All right, it will be taken care of here.
The House divided.
AYES - 210: Abrahams, B L; Adams, F; Adams, P E; Bapela, K O; Basson, J V; Bekwa, S D; Beukman, F; Bhengu, P; Bhengu, F; Bhengu, N R; Bilankulu, N K; Bongo, B T; Bonhomme, T J; Booi, M S; Boroto, M G; Boshielo, S P; Brown, L; Capa, R N; Capa, N; Carrim, Y I; Cele, B H; Chabane, O C; Chohan, F I; Chueu, M P; Coleman, E M; Cronin, J P; Davies, R H; Didiza, A T; Dlakude, D E; Dlamini, B O; Dlamini-Dubazana, Z S; Dlomo, B J; Dlulane, B N; Dunjwa, M L; Esterhuizen, J A; Faku, Z C; Frolick, C T; Fubbs, J L; Gamede, D D; Gcwabaza, N E; Gigaba, K M N; Gina, N; Goqwana, M B; Gordhan, P J; Gumede, D M; Hlengwa, M; Holomisa, B H; Jafta, S M; Jeffery, J H; Johnson, M; Kalako, M U; Kekana, P S; Kekana, C D; Kekana, E; Kekana, M D; Kenye, T E; Khoarai, L P; Khosa, D H; Khoza, T Z M; Khoza, M B; Khubisa, N M; Khunou, N P; Kilian, J D; Koornhof, G W; Kubayi, M T; Lesoma, R M M; Letsatsi-Duba, D B; Loliwe, F S; Luyenge, Z; Luzipo, S; Maake, J J; Mabasa, X; Mabe, B P; Mabija, L; Mabilo, S P; Madella, A F; Madlopha, C Q; Maesela, P; Mafolo, M V; Mafu, N N; Magadzi, D P; Magwanishe, G; Mahambehlala, T; Mahlalela, A F; Mahlangu, D G; Mahlangu, J L; Maila, M S A; Majeke, C N; Majola, F Z; Makhubela-Mashele, L S; Makhubele, Z S; Makondo, T; Makwetla, S P; Malgas, H H; Maluleke, J M; Manana, D P; Manana, M C; Manana, M N S; Mandela, Z M D; Mantashe, P T; Maphatsoe , E R K; Mapulane, M P; Martins, B A D; Masango, M S A; Masehela, E K M; Mashatile, S P; Mashego-Dlamini, K C; Mashile, B L; Masina, M C; Masondo, N A; Masuku, M B; Masutha, T M; Mathale, C C; Mathebe, D H; Matlala, M H; Matshoba, M O; Matsimbi, C; Mavunda, R T; Maxegwana, C H M; Mbalula, F A; Mchunu, S; Mdakane, M R; Memela, T C; Mjobo, L N; Mkongi, B M; Mmemezi, H M Z; Mmola, M P; Mmusi, S G; Mncwabe, S C; Mnganga - Gcabashe, L A; Mnguni, D; Mnisi, N A; Mogotsi, V P; Mokoto, N R; Molebatsi, M A; Moloi-Moropa, J C; Morutoa, M R; Mosala, I; Mothapo, M R M; Motimele, M S; Motshekga, M S; Mpontshane, A M; Mpumlwana, L K B; Msibi, V Z; Mthembu, N; Mthethwa, E N; Mthethwa, E M; Mudau, A M; Muthambi, A F; Nchabeleng, M E; Ndaba, C N; Ndabeni-Abrahams, S T; Ndongeni, N; Nel, A C; Nene, N M; Ngcobo, B T; Ngwenya-Mabila, P C; Nkadimeng, M F; Nkomo, S J; Nkwinti, G E; Nobanda, G N; November, N T; Ntombela, M L D; Ntshayisa, L M; Nxesi, T W; Nyalungu, R E; Nzimande, B E; Oliphant, G G; Oosthuizen, G C; Pandor, G N M; Peters, E D; Phaahla, M J; Phosa, Y N; Pikinini, I A; Pilane-Majake, M C C; Qikani, A D N; Radebe, G S; Ralegoma, S M; Ramatlakane, L; Ramokhoase, T R J E; Rantho, D Z; Raphuti, D D; September, C C; Shabangu, S; Shaik Emam, A M; Sibande, M P; Singh, N; Sisulu, L N; Sithole, K P; Siwela, E K; Sizani, P S; Skosana, J J; Skwatsha, M; Smith, V G; Surty, M E; Tleane, S A; Tobias, T V; Tom, X S; Tongwane, T M A; Tseke, G K; Tseli, R M; Tshwete, P; Tsoleli, S P; Tsotetsi, D R; v R Koornhof, N J J; Van Rooyen, D D D; Xasa, T; Xego- Sovita, S T; Zokwana, S.
NOES - 6: Filtane, M L W; George, D T; James, W G; Ross, D C; Steenhuisen, J H; Waters, M.
Question agreed to.
Taxation Laws Amendment Bill accordingly read a first time.
Question put: That the Rates and Monetary Amounts and Amendment of Revenue Laws Bill be read a first time.
Question agreed to (Democratic Alliance dissenting).
Rates and Monetary Amounts and Amendment of Revenue Laws Bill read a first time.
Question put: That the Tax Administration Laws Amendment Bill be read a second time.
Division demanded.
The House divided.
AYES - 212: Abrahams, B L; Adams, F; Adams, P E; Bapela, K O; Basson, J V; Bekwa, S D; Beukman, F; Bhengu, P; Bhengu, F; Bhengu, N R; Bilankulu, N K; Bongo, B T; Bonhomme, T J; Booi, M S; Boroto, M G; Boshielo, S P; Brown, L; Capa, R N; Capa, N; Carrim, Y I; Cele, B H; Chabane, O C; Chohan, F I; Chueu, M P; Coleman, E M; Cronin, J P; Davies, R H; Didiza, A T; Dlakude, D E; Dlamini, B O; Dlamini-Dubazana, Z S; Dlomo, B J; Dlulane, B N; Dunjwa, M L; Esterhuizen, J A; Faku, Z C; Frolick, C T; Fubbs, J L; Gamede, D D; Gcwabaza, N E; Gigaba, K M N; Gina, N; Goqwana, M B; Gordhan, P J; Gumede, D M; Hlengwa, M; Holomisa, B H; Jafta, S M; Jeffery, J H; Johnson, M; Kalako, M U; Kekana, P S; Kekana, C D; Kekana, M D; Kekana, E; Kenye, T E; Khoarai, L P; Khosa, D H; Khoza, T Z M; Khubisa, N M; Khunou, N P; Kilian, J D; Koornhof, G W; Kubayi, M T; Lesoma, R M M; Letsatsi-Duba, D B; Loliwe, F S; Luyenge, Z; Luzipo, S; Maake, J J; Mabasa, X; Mabe, B P; Mabija, L; Mabilo, S P; Madella, A F; Madlopha, C Q; Maesela, P; Mafolo, M V; Mafu, N N; Magadzi, D P; Magwanishe, G; Mahambehlala, T; Mahlalela, A F; Mahlangu, D G; Mahlangu, J L; Maila, M S A; Majeke, C N; Majola, F Z; Makhubela- Mashele, L S; Makhubele, Z S; Makondo, T; Makwetla, S P; Malgas, H H; Maluleke, J M; Manana, D P; Manana, M C; Manana, M N S; Mandela, Z M D; Mantashe, P T; Maphatsoe, E R K; Mapulane, M P; Martins, B A D; Masango, M S A; Masehela, E K M; Mashatile, S P; Mashego-Dlamini, K C; Mashile, B L; Masina, M C; Masondo, N A; Masuku, M B; Masutha, T M; Mathale, C C; Mathebe, D H; Matlala, M H; Matshoba, M O; Matsimbi, C; Mavunda, R T; Maxegwana, C H M; Mbalula, F A; Mchunu, S; Mdaka, N M; Mdakane, M R; Memela, T C; Mjobo, L N; Mkongi, B M; Mmemezi, H M Z; Mmola, M P; Mmusi, S G; Mncwabe, S C; Mnganga - Gcabashe, L A; Mnguni, D; Mnisi, N A; Mogotsi, V P; Mokoto, N R; Molebatsi, M A; Moloi-Moropa, J C; Morutoa, M R; Mosala, I; Mothapo, M R M; Motimele, M S; Motshekga, M S; Mpontshane, A M; Mpumlwana, L K B; Msibi, V Z; Msimanga, C T; Mthembu, N; Mthethwa, E N; Mthethwa, E M; Mudau, A M; Muthambi, A F; Nchabeleng, M E; Ndaba, C N; Ndabeni-Abrahams, S T; Ndongeni, N; Nel, A C; Nene, N M; Ngcobo, B T; Ngwenya-Mabila, P C; Nkadimeng, M F; Nkomo, S J; Nkwinti, G E; Nobanda, G N; November, N T; Ntombela, M L D; Ntshayisa, L M; Nxesi, T W; Nyalungu, R E; Nzimande, B E; Oliphant, G G; Oosthuizen, G C; Pandor, G N M; Patel, E; Peters, E D; Phaahla, M J; Phosa, Y N; Pikinini, I A; Pilane-Majake, M C C; Qikani, A D N; Radebe, G S; Ralegoma, S M; Ramatlakane, L; Ramokhoase, T R J E; Rantho, D Z; Raphuti, D D; September, C C; Shabangu, S; Shaik Emam, A M; Sibande, M P; Singh, N; Sisulu, L N; Sithole, K P; Siwela, E K; Sizani, P S; Skosana, J J; Skwatsha, M; Smith, V G; Surty, M E; Tleane, S A; Tobias, T V; Tom, X S; Tongwane, T M A; Tseke, G K; Tseli, R M; Tshwete, P; Tsoleli, S P; Tsotetsi, D R; v R Koornhof, N J J; Van Rooyen, D D D; Xasa, T; Xego- Sovita, S T; Zokwana, S. NOES - 6: Filtane, M L W; George, D T; James, W G; Ross, D C; Steenhuisen, J H; Waters, M.
Question agreed to.
Tax Administration Laws Amendment Bill accordingly read a second time.
Order! The Bill will be sent to the National Council of Provinces for concurrence.