Report of
the Portfolio Committee on Finance on the Appropriation Bill 2005/6, dated 8 March 2005:Committee’s recommendations: |
|
|
|
|
The Committee urges the Government to examine the reasons for the relatively poor performance of tourism in the context of overall more rapid expansion of the tertiary sector and to suggest specific measures that can be taken to foster better levels of growth in the industry |
Committee’s recommendations: |
|
The Committee urges the Government to continue exploring avenues to encourage investments in labour intensive sectors of the economy and in labour intensive production capacity. |
The Committee supports the Government’s initiatives to foster skills development. It, however, urges Government to ensure that there is good management capacity to implement the various initiatives. |
The Committee notes the concerns expressed at the performance of certain SETAs. |
Fiscal policy and budget framework
Committee’s recommendations: |
The Committee welcomes the real increase in expenditure outlined in the Budget, particularly the increases in social grants, the allocations to education, and the funds to redress the salaries of teachers and police. |
Committee’s recommendations: |
The Committee notes that the Budget puts in place necessary conditions for improvements in the quality of social service delivery by Government, but whether such improvements are realised depends on the quality of implementation. The Committee recognises that Parliament has a key role to play in exercising oversight of implementation, and therefore urges all Portfolio Committees to develop systematic approaches to reviewing the strategic plans, budgets, quarterly performance reports and annual reports of the departments and other entities for which they are responsible. In this regard the Committee recommends the approach set out in the discussion document "Guidelines for Legislative Oversight through Annual Reports". |
Committee’s recommendations: |
The Committee commends the National Treasury and the SARs for the success of their tax broadening initiatives, and urges further initiatives in this regard be pursued vigorously. |
The Committee supports the Government’s position on secondary tax on companies, and urges that the National Treasury, working together with other role players such as the Department of Trade and Industry, to develop a strategy: to explain the tax to the market so as to deal decisively with the misconceptions and misrepresentations that exist; and to disseminate information regarding the real effective tax on company profits in South Africa. |
The Committee recommends that National Treasury should examine the issue of vehicle allowances further with a view to structuring them in such a way as to provide a strong incentive to the use of small, environmentally friendly cars. |
The Committee urges the National Treasury and SARS to explore whether it is possible to sanction tax advisors that develop aggressive tax avoidance schemes, or advise their clients to use such schemes. |
The Committee commends the Government for the tax concessions for small business, but notes that these will not have a impact on very small and micro-enterprises and therefore urges that the affordable micro-finance initiatives announced in the Budget be implemented effectively and expeditiously. |
Committee’s recommendations: |
The Committee recommends that the tax treatment of companies providing significant health benefits to its employees be reviewed, and also that any unintentional discrimination be eliminated. |
Oral submissions