Government proposes a new national tax, and South Africa’s richest city owes Microsoft R344 million
The South African rand strengthened on Tuesday as investors assessed a series of delayed economic data from the United States.
The rand traded at 17.2350 against the dollar, which is roughly a 0.4% increase from Monday’s close.
The dollar weakened about 0.3% against a basket of currencies after data revealed that US retail sales rose less than expected in September.
This indicated a potential slowdown in the economy and bolstered market expectations for a rate cut next month.
On the other hand, US producer prices increased in September as anticipated. Like other risk-sensitive currencies, the rand often reacts to global factors such as US economic policies and data, in addition to domestic developments.
South Africa’s composite leading business cycle indicator fell by 1.2% month-on-month in September, according to central bank data released on Tuesday.
This indicator compiles various data points, including vehicle sales, business confidence, money supply, and others, to assess the outlook for Africa’s largest economy.
Analysts have noted that the rand currently appears to be influenced more by global trends, as local developments are not significant enough to provoke a strong market reaction in either direction.
On Wednesday, 26 November, the rand was trading at R17.18 to the dollar, R22.65 to the pound and R19.90 to the euro. Oil was trading slightly lower at $62.76 a barrel.
5 important things happening in South Africa today
A new national tax proposed: The Treasury has proposed a new national tax of 20% on online betting, which will be added on top of the existing provincial gambling taxes. A draft discussion paper regarding the proposed online gambling tax was released for public comment late on Tuesday. This new tax is expected to generate R10 billion for the national treasury, as online betting in South Africa has surged to over R1.1 trillion annually. [BusinessTech]
Gauteng owes Microsoft R344 million: The Gauteng Department of e-Government owes Microsoft more than a third of a billion rand in unpaid license fees for its 2022-2025 licence agreement. This is according to the Democratic Alliance’s spokesperson for e-Government, Michael Waters, who said that the arrears of R344 million was revealed during a recent e-Government portfolio committee meeting. [Newsday]
SARS takes over R100 million from politically connected people: The South African Revenue Service (SARS) identified 105 potential cases of tax non-compliance involving politically exposed persons during the three-year period from 2022 to 2025, as revealed by Finance Minister Enoch Godongwana. Out of these cases, 29 were audited, leading to additional assessments amounting to R107 million, followed by debt collection efforts. [Business Day]
Nedbank to pay Transnet R600 million: Nedbank Group will pay Transnet R600 million in a confidential settlement, resolving a year-long legal dispute over interest-rate swaps. This agreement was reached without admission of liability and aims to preserve their business relationship. [Moneyweb]
Good news for South Africans blocked from getting IDs: The Department of Home Affairs has launched an online platform where any South African can verify or reinstate their citizenship if it was unconstitutionally withdrawn, which would’ve blocked them from acquiring an ID in South Africa, including the older green ID booklet and the modern smart ID card. [MyBroadband]
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