Nanso imihlola!!
----------------------------------
PARLIAMENT 21 February 2007 Sapa
LOBOLA A TAXING QUESTION
To tax lobola, or not to tax: that is the question that Finance
Minister Trevor Manuel does not want to touch with a bargepole.
He told MPs in his Budget speech on Wednesday that last year he
received a suggestion he should make lobola, the traditional
payment for a bride, tax deductible.
"This year, I've been given a suggestion that I should impose
VAT, or that I must tax lobola trusts, since some people are making
money out of them," he said.
However this issue seemed "far too complex", and he would have
to consult "our elders".
"I don't know that we can get involved in these matters through
Sars," he said.
He said the lobola tax proposal was one of hundreds of "Tips for
Trevor" he received ahead of the Budget from members of the public.
"Let me thank all of those South Africans who have taken time
and effort to write to me," he said.
"The strength of our democracy is measured by the depth of
involvement by ordinary people in the affairs that affect them."
He said a Mr AS Smit submitted a tip which asked: "Can you thank
taxpayers in your Budget address for their contribution."
"Mr Smit, you are completely correct, so I apologise if I have
not done it adequately in the past, and express our joint gratitude
to all taxpayers," Manuel said.
Announcing a series of tax relief measures for individual
earners, he appealed to taxpayers to use the extra cash to settle
debts or save, rather than for consumption.
"And the governor [of the Reserve Bank, Tito Mboweni] said if
they don't listen to my pleading, he'll have to report them to the
monetary policy committee," he added.
The committee is the body that adjusts the rate at which the
bank lends money to commercial banks, a figure which determines
interest rates they in turn charge customers.
In another light moment, Manuel outlined how South Africa's
foreign reserves, public debt to GDP ratio, and economic growth had
improved dramatically since President Thabo Mbeki took office in
1999.
"However Mr President, it's not all smooth sailing. Can I point
out that when you came to office Bafana Bafana was ranked 25th in
the world," he said.
South Africa's national men's soccer team is currently ranked
59th out of 207 teams by Fifa. Last year in the African Nations
Cup, it failed to score a single goal.
Later in his speech, Manuel announced that following discussions
with Cricket SA, tax law was being changed to ease the tax
liabilities of professional sport bodies "that contribute
meaningfully to the development of amateur sports".
Since that discussion, he noted, the Proteas had risen to the
top spot in the world one-day cricket rankings.
"I should just announce the same terms are likely to be
available to all codes," he said.