Rates & Monetary Amounts and Amendment of Revenue Laws Bill; Taxation Laws Amendment Bill; Tax Administration Laws Amendment Bill, Insurance Bill: adoption

Meeting report

Monetary Amounts and Amendment of Revenue Laws Bill

The Chairperson put the Bill before the Committee for consideration.

The Committee adopted the Bill.

Committee Report on the Rates & Monetary Amounts and Amendment of Revenue Laws Bill

The Chairperson took the Committee through Report on the Rates & Monetary Amounts and Amendment of Revenue Laws Bill. He highlighted its recommendations as follows: that Section 11 of the Money Bills Amendment Procedure and Related Matters Act, which deals with the Revenue Bills be reviewed to allow the Finance Committees to hold joint public hearings on the revenue Bills; the Finance Committees would engage National Economic Development and Labour Council (Nedlac) on a quarterly basis to report on progress made with regards to the socio-economic impact of the proposed tax on sugar-sweetened beverages; and the Committee will monitor the implementation of the Health Promotion Levy (HPL) and its provisions in the Bill and should be reviewed three years from their implementation following a socio-economic impact assessment. The Committee also recommended that some of the revenue from the levy be used to implement health promotion interventions targeting non-communicable diseases.

Mr E Makue (ANC, Gauteng) found it strange that there was no mention of any deliberations or consultations with the Department of Health or parliamentary committees on health in relation to the HPL, given the levy was specifically for health promotions. The levy was not solely a tax matter. 

The Chairperson agreed that Mr Makue’s input be added as part of the Committee’s recommendations.

The Committee, having considered and examined the Rates & Monetary Amounts and Amendment of Revenue Laws Bill, referred to it, and classified by the JTM as a Money Bill, reported that it had agreed to the Bill.

The Democratic Alliance objected and reserved its position.

Taxation Laws Amendment Bill and Tax Administration Laws Amendment Bill

The Chairperson said the Committee, having considered and examined the Taxation Laws Amendment Bill and Tax Administration Laws Amendment Bill, reported that it had agreed to the Bills.

Committee Reports on the Taxation Laws Amendment Bill and Tax Administration Laws Amendment Bill

The Committee agreed to both reports on the Bills.

Insurance Bill

The Chairperson put the Bill before the Committee for consideration.

The Committee adopted the Bill.

Committee report on the Insurance Bill

Mr F Essack (DA, Mpumalanga) noted that Treasury gave a presentation on the Insurance Bill on 28 November. He took cognisance of what it had to say and noted that the Prudential Authority is a structure of the South African Reserve Bank. However, the Financial Sector Council seemed not to have been taken on board as far as processing the Bill was concerned. Also, the Committee had not sat for any public hearings on the Bill.

Ms Jeannine Bednar- Giyose, Director: Financial Sector Regulation and Legislation, National Treasury, explained that Treasury had prepared a comments matrix and presentations showing the depth and breadth of the consultation processes that were involved in coming up with the Bill. All public comments were thoroughly considered and responded to from the tabling of the Bill in January 2016 to date. Treasury made all efforts to encompass all the submissions received from stakeholders during the entire process and to ensure the alignment of the Bill to transformation objectives among other concerns. The Bill that had been finally adopted by the National Assembly was a product of both the Standing Committee on Finance consultation processes and the broader transformation processes. Treasury felt if the Select Committee should hold further sets of hearings, issues that would be raised might not be new.

Mr L Nzimande (ANC, KwaZulu- Natal) said notwithstanding the response by Treasury, the concerns raised by Mr Essack were specific. The issue was about the lack of consultation at National Council of Provinces (NCOP) level. However, the significance of the Bill lies in its content and what it sought to achieve. Going forward, Bills also had to be canvassed at the NCOP on time so that the public is given an opportunity to make submissions before the Committee. Separation of powers was of importance.

The Chairperson said the Committee, having considered and examined the Insurance Bill, reported that it had agreed to the Bill. He suggested a discussion on the role of the NCOP in terms of Section 75 and 77 of the Constitution. The provisions must be refined to get the work of the Committee more in line with constitutional provisions. 

Consideration of the draft Report on the Proposed Fiscal Framework

The Chairperson noted that the contents of the Report were largely the same as those of the Revised Fiscal Framework Report, save for a few additions.

The Committee, having considered the proposed fiscal framework of the Minister of Finance on 25 October 2017, adopted the report.

The Democratic Alliance reserved its position.

The Chairperson thanked Members and Treasury for their contributions. He thanked everyone for their hard work throughout the year 2017.

The meeting was adjourned.