The Minister of Finance’s bailout plan for Ithala’s retail depositors has drawn sharp criticism from KZN’s Finance MEC Francois Rodgers, who warns the deal’s fine print could leave the province footing a hefty bill.
Finance Minister Enoch Godongwana won’t reveal where the spending cuts or savings will come from but says South Africa must “do more with less”.
South Africa’s credibility among investors and ratings agencies will depend on whether the government meets the fiscal targets it has set, says Treasury.
Tax specialist Louis Botha answers pressing questions about the suspended VAT increase and its broader implications for budget-making power and taxpayer rights.
SARS tells vendors there is now no legal basis for them to charge consumers VAT of 15.5% from 1 May.
Ithala depositors remain locked out of their funds while disputes over frozen accounts, strategic alliances, and government guarantees deepen.
The ANC and the DA present South Africans with different versions of what led to the decision to halt the increase.
The finance minister defends the VAT hike as an urgent fiscal necessity, warning that suspending it could blow a R13.5bn hole in the Budget.
While the SIU distances itself from the leak, unanswered questions remain about why a lease allegedly approved by Treasury and audited without findings is now under scrutiny.
Danie van Zyl of Sanlam Corporate Investments warns that allowing access to retirement components in retrenchment cases might jeopardise long-term savings and place added pressure on trustees.
Once implemented on 1 May, undoing the VAT hike could prove nearly impossible. Even if Parliament later votes against the Rates and Monetary Amounts Bill, the logistics of refunding the collected VAT present formidable challenges.
The need to get South Africa off the grey list has seen the FSCA beefing up its supervisory and licensing capacities.
The move will limit taxpayer defences that rely solely on claiming an unintentional mistake.
Unathi Kamlana says the Authority will support the integration of advanced technologies and strengthen frameworks for consumer protection, cyber resilience, and financial inclusion.
The minister’s address to the FSCA conference also touched on regulation, South Africa’s G20 presidency, political tensions over the Budget, and economic growth.
‘Due to the complexity and seriousness of this case … it deserves the attention of the Supreme Court of Appeal,’ says Judge Leonard Twala.
While South Africa is on track to exit the grey list by October, National Treasury emphasises the importance of long-term improvements and continuous progress in financial regulation.
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