Madam Deputy Speaker, tax is not the most popular topic. Income tax has made more liars out of people than golf has. Winston Churchill remarked that there is no such thing as a good tax. And Mark Twain wrote in 1902, "what is the difference between the taxidermist and the tax collector? The taxidermist only takes your skin." In a recession tax collecting is difficult, and if you lose the loyalty of the taxpayer there is a problem.
In politics or taxation it is all about perceptions. The Americans say perception is the truth. So, hon Minister, it is your duty as captain of the tax collecting team to make sure that all your taxpayers remain loyal and happy. You can only do that in a recession if they are convinced there is value for their taxes. A very simple thing like glamorous motorcars is not good for the morale of this country's tax base.
Hon Minister, you have set the example, but it was your duty to make sure that your colleagues followed your example. There should have been new guidelines fit for a recession. This whole car debacle is unnecessary and not good for South Africa. Some of these amendments are extremely technical, and I would like to thank the Sars team for their efforts. It was a pleasure to see them in action.
Now, for the first time these amendments contain two incentives in support of the environment. The sale of carbon credits will be exempt from income tax. It is no secret that world opinion on global warming is divided. There is also a huge debate on the effectiveness of carbon credits to reduce greenhouse gases.
Unfortunately, I do not have the time to explain to the House how the carbon credits work. What is true, is that the lack of regulations has made the marketing of these credits problematic. There are many questions. How much is the real impact if in South Africa the carbon credit acquisition is based primarily on goodwill or with a view to gaining an advantage in the market?
There is no incentive to purchase credits such as the Eskom Power Conservation Programme, PCP, options for example. With these new amendments, we hope to see a higher level of domestic investments. In many instances, companies and government are unaware that they can issue carbon credits or fail to submit qualifying projects.
As far as I know, there is no natural carbon credit issuing body. That creates uncertainty in the market, and what we need is an open exchange for the trading of these credits, like the Johannesburg Stock Exchange, JSE. Cope will support this legislation. [Applause.]