1. Presented by Stiaan Klue
2010 Budget Speech
Presented by Stiaan Klue

2. Executive Summary General comments Expenditure Tax burden
Tax submission deadlines
Interest exemption

3. General comments

4. General Pragmatic & well-balanced budget.
Certainly difficult balancing act to address job creation, long term sustainable growth, poverty reduction and improvements in service delivery.
Answer to fund the budget proposals:
- Improved tax compliance, closing loopholes, improved tax
administration, and improved public sector efficiencies.

5. Expenditure
Overall efficiency in government spending is very poor when looking at expenditure outcomes.
Furthermore, the delivery in government programs is sometimes questionable.

6. Expenditure (cont..) Example 1: Expenditure on education
As a percentage of GDP is well above the world average
Problem is not the amount of money spent but the outcomes of our education
South African labour force is poorly educated

7. Chart 1: Spending on Education as a percentage of GDP.

8. Chart 2: PIRLS test in 2006 selected countries.

9. Chart 3: University exemption ratio’s of selected emerging markets.

10. Chart 4: Education of the workforce compared.

11. Chart 5: Population in paid employment as percentage of total population.

12. Tax burden Welcome the R6.5bn relief.
Currently 25% of individual taxpayers pay 75% of PIT.
Only 0,25% of companies in SA pay 55% of corporate taxes.
Less than 5% of all companies pay 91% of all company tax.
This is a huge burden by any standards and needs to be addressed in future.
Recommend that the tax base be broadened aggresively.

13. Chart 6: The ratio of taxes to GDP and paid employees to population.

14. Chart 7: Tax burden – rate of tax revenue to GDP.

15. Tax submission deadlines

16. 2010 filing season We expected an announcement on the deadlines.
Tax practitioners experience pressure.
Staggering deadlines.

17. Interest exemption

18. Interest exemption Welcome increase in interest exemption.
However, it is still not sufficient to encourage individuals to save.
Suggest to increase exemption significantly i.e. R