Madam Deputy Speaker, executives present, the finance family led by Minister Gordhan, hon members, as was mentioned earlier on by the Chairperson of the Standing Committee on Finance, the ANC, indeed, inherited a fragmented tax system in 1994. However, the ANC realised the need to engage with opposition parties so as to redress the inequalities of the past.
This exercise was neither an easy nor an appreciated one. However, the ANC emphasised the need to amend the taxation laws for the benefit of men and women of all races, especially those at the middle-income level and the poorest of the poor.
The document of the ANC's political programme called the Freedom Charter states that "the state shall recognise the right and duty of all to work, and to draw full unemployment benefits". It is therefore necessary that the ANC executes diligently this key deliverable.
Madam Deputy Speaker, allow me to inform the House how the ANC has achieved the above-mentioned deliverable: According to the present income tax tables, an individual who is receiving a car allowance is expected to adhere to the deemed business kilometre system. The good news is that as of 2010, individuals receiving a car allowance will be required to keep a log book only. That's how good and simple it is.
Another achievement coming through these amendments is that when a member of a retirement savings fund withdraws a lump sum from the fund before the due time, that withdrawal works against the member. Much as the ANC is aware that this table was designed to discourage retirement withdrawals, it becomes an unfair rule when a member makes a withdrawal to cover shortfalls during periods of unemployment. The ANC, therefore, expects the Taxation Laws Amendment Bill to take cognisance of the changes brought about by the economic downturn, where people are retrenched daily, especially in the private sector.
With regard to a situation where a member of a retirement savings fund becomes unemployed and wishes to withdraw money from the fund due to unforeseen financial constraints, the ANC proposes that the member must be able to do so and keep the receipts as proof that the withdrawal was utilised properly and for a good reason. However, it is the duty of the ANC to ensure the efficient and effective social security of all South African citizens.
We all know that it is common practice that when people are in love they usually get married in community of property, forgetting that there are other members of the family, like the children. As a result, when one of the partners dies they find themselves faced with problems. This is due to a lack of awareness of the taxation laws that hinder the benefits due to the remaining partner.
It is the function of the government to ensure that the communities understand these laws in order to avoid stresses and strains experienced by bereaved partners. The National Treasury needs to design a comprehensive outreach awareness programme on matters like minor beneficiary funds, postretirement medical aid, retirement lump sum withdrawal, housing transfer, and estate duty. This is critical to the ANC while it lives and leads. I thank you. [Applause.]