Business

5 important things happening in South Africa today

Staff Writer

 ·25 Jul 2022

Here’s what is happening in and affecting South Africa today:

• BIG: A new report by Intellidex and South African business groups says that the ‘least bad’ option to fund a basic income grant in South Africa would be through another VAT hike, with the authors suggesting that 17% would be the figure needed. This would add another R50 billion to the fiscus, which would be enough to support the grant. Economists and analysts widely accept that a basic income grant will become a reality in South Africa, but the debate on funding rages on. [BusinessLive]

• Tax deadlines: SARS says South African taxpayers still have to fulfil their tax obligations on time, despite 30 of the revenue service’s offices being closed due to strike action. SARS admitted that the strike was causing some delays, but it does not need to extend any deadlines yet. Provisional taxpayers must file their first estimation for the 2023 tax year and make a payment by the end of August. Non-provisional taxpayers must file their annual returns by 24 October. [Moneyweb]

• Blitz: The Department of Employment and Labour is making good on its promises to crack down on illegal workers in South Africa, with a weekend blitz leading to 50 infringement notices and 11 arrests in the road freight sector. More than 200 illegal foreign workers have been arrested this year so far. The infringement notices were not exclusively about foreign workers, however, with the department noting underpaying by employers and health and safety violations. [News24]

• Zuma sweep: The ANC in KwaZulu Natal has concluded its weekend elective conference, with the pro-Zuma ‘Taliban’ group making a clean sweep of the province. All the newly elected officials in the province are part of the so-called pro-Zuma faction, who have made it clear that they are not happy with the government’s handling of the former president. The ANC in KZN now wants the party to get rid of its ‘step-aside’ rule, which prevents members facing serious criminal charges from holding positions in the party. [Daily Maverick, EWN]

• Markets: South Africa’s rand eased in trade on Friday, losing gains from the previous day made on the biggest rate hike in nearly two decades delivered by the central bank to tame soaring inflation. The rand rose against the dollar after the central bank hiked its primary lending rate by 75 basis points to 5.50%. Economists noted that the gains were limited and that the rand would struggle to stand its ground. On Monday, the rand was trading at R16.58/$, R17.18/€ and R20.18/£. Brent crude oil was trading at $102 a barrel. [Reuters]