Deputy Speaker, Minister, the Taxation Laws Amendment Bills contain annual tax proposals as announced in the 2009 Budget Review. This legislation must be considered against the backdrop of the global economic slowdown and its impact on the fiscus. This will result in a far greater Budget deficit than earlier estimated, which in turn will result in increased public sector borrowing. The tax proposals cover a number of issues and some are very relevant to us as MPs as well. For example, under travel allowances, the deemed kilometre method is to be repealed. So all taxpayers, including MPs, must now keep a logbook of business travel if they wish to travel and claim from their travel allowances. This is very important to note.
As the ACDP we also welcome the two incentives in support of the environment, namely tax exemption for the sale of certified emission reductions, and the notional deduction for energy efficiency savings. These are very positive. Minister, I am sure that all individual taxpayers, including us as MPs, are also grateful for the adjustment to personal tax thresholds, which resulted in tax relief for individuals estimated at R13,5 billion.
However, a number of concerns which the ACDP would like to briefly highlight were raised. One of them relates to the "pay now, argue later" principle. Whilst provisions exist for the taxpayer to request that payment be deferred, the view was expressed that this principle results in an unjustifiable denial of the right to be heard or the audi alteram partem rule.
Whilst the ACDP appreciates that the amendments seek to clarify and provide fairness in terms of existing case law and international experience, we as Parliament may need to monitor this aspect and determine how many deferments are granted, as well as the number of cases where taxpayers are successful.
In view of the global meltdown and sharply reduced revenues due to the domestic recession, the ACDP will support these amendments, which will enable the fiscus to honour its spending commitments announced in February this year. We can be grateful for the sound manner in which our fiscal framework has been managed over the years. It has given us the space for fiscal expansion, particularly in infrastructure spending, in these recessionary times.
Deputy Speaker, the time keeps on changing and I'm not sure. I was supposed to have three minutes.