-
3 weeks ago | 
currencynews.co.za | Rob Rose |Vernon Wessels
Not many saw this coming. With just hours to go until parliament was due to meet and vote on finance minister Enoch Godongwana’s unpopular budget, which had proposed a VAT hike from 15% to 16% over the next two years, it seemed this was a mission impossible. The process over the past few weeks had, after all, been an “absolute clown show”, in the words of DA strategist Ryan Coetzee, ever since Godongwana first cancelled his budget presentation in parliament an aeon back on February 19.
-
3 weeks ago | 
currencynews.co.za | Rob Rose |Vernon Wessels
With just two days to go before the budget is debated in parliament, the deepening standoff between the ANC and DA means there is no agreement yet between the two largest parties in the grand coalition government. On Tuesday, parliament’s finance committee meets to debate the fiscal framework and on Wednesday, the full plenary session of parliament convenes – but the ANC has only 159 of the 200 votes needed to pass the budget.
-
1 month ago | 
currencynews.co.za | Rob Rose |Vernon Wessels
With just a week left to reach an agreement on South Africa’s most contested national budget yet, the ANC and the DA are deadlocked, with the Expropriation Act at the centre of the bust-up. This land reform legislation, signed into law by President Cyril Ramaphosa in January, was lauded by the ANC as a landmark victory.
-
1 month ago | 
currencynews.co.za | Vernon Wessels |Rob Rose
It’s budget time again, just like three weeks ago. This time, however, finance minister Enoch Godongwana did actually stand up and deliver the budget in parliament, unlike on February 19, when it was aborted at the 11th hour over a contentious plan to hike VAT from 15% to 17%. This time, Godongwana trimmed back the tax proposal, saying VAT will be raised to 15.5% this year, and 16% next year.
-
1 month ago | 
currencynews.co.za | Vernon Wessels |Rob Rose
Before Enoch Godongwana even steps up to the podium to present budget 2.0 on Wednesday, the 65-year-old finance minister and his National Treasury will have already sealed South Africa’s fate. At stake is the credibility of the government of national unity (GNU) and its ability to reach consensus on the main driver of South Africa’s economic agenda: a budget that keeps the state operational and allows businesses to plan.
-
2 months ago | 
currencynews.co.za | Tim Cohen |Vernon Wessels
Investors responded with stunned surprise to the shocking decision to delay South Africa’s national budget, with most markets modestly down on the day. Considering the unprecedented nature of the event – plus the contentious matter of a two percentage point hike in VAT – it could’ve been much bloodier on trading screens. The rand weakened 0.9% against the dollar – hardly its worst day, given its reputation as one of the most volatile major currencies.
-
Jan 16, 2025 | 
currencynews.co.za | Vernon Wessels
Driving through Sandton, Africa’s wealthiest commercial hub, you’ll notice glistening corporate head offices among bustling taxi ranks, endless construction, and luxury hotels. And then another hallmark: South Africa’s top law firms, clustered within an area of just over half a square kilometre. Parks Tau, the minister of trade, industry and competition, has picked a fight with all of them – and the battleground is broad-based BEE (BBBEE). To be fair, this clash didn’t begin with Tau.
-
Jan 9, 2025 | 
currencynews.co.za | Vernon Wessels
The government, desperate to find new avenues of raising money, wants to change the way it taxes unit trusts. But its plans threaten to increase investor costs and risk undermining the very goal it aims to achieve – fostering a savings culture. In mid-November, the National Treasury released a discussion document outlining its proposals on the taxation of collective investment schemes (CISs) such as unit trusts.
-
Nov 17, 2024 | 
currencynews.co.za | Vernon Wessels
Not everyone is a top exec. The countdown to that long-awaited year-end bonus feels like it drags on forever, especially as payday approaches. You think, “I can finally splurge on that …” But wait – is that really the best idea? Should you pay off your credit card instead? And what about school fees, uniforms, books and stationery? Sigh. Life, huh? Adulting. Ugh. The joy of your bonus quickly evaporates.
-
Oct 27, 2024 | 
currencynews.co.za | Vernon Wessels
This week, South Africans get their first look at the progress of the government of national unity (GNU) – in rands and cents – as finance minister Enoch Godongwana unveils his half-year budget. Critically, the budget will reveal the state’s priorities and whether the tide has turned for a country after a lost decade of near-zero growth. “Money doesn’t lie,” says Albert Botha, head of fixed income at Ashburton Investments.
