Question NW2401 to the Minister of Finance
21 September 2018 - NW2401
Alberts, Mr ADW to ask the Minister of Finance
(1)Whether the National Treasury intends to adjust the entry threshold for the payment of the skills development levy upwards annually in accordance with the annual salary increase rate; if not, why not; if so, (a) what are the relevant details in this regard and (b) what does the complete exposition of the planned entry threshold increase entail; (2) whether he has found that this policy position was rational and constitutional, based on the fact that small business owners have to pay higher increases and thus higher salaries annually; if not, what is the position in this regard; if so, what are the relevant details; (3) whether he will make a statement about the matter?
Reply:
1. Tax announcements are generally only made on Budget Day given the market sensitivity of such announcements. It will therefore not be appropriate to pre-empt the Budget process by making any announcement on any tax or levy before Budget Day. In preparing for the Budget, the National Treasury does review thresholds and rates for possible changes to be announced in the coming Budget.
2. I am not aware of what policy position the Honourable Member is referring to with regard to the skills levy or any formal requirement for small businesses to pay higher increases and salaries. I would welcome any further information on such requirements.
3. I only make any announcement on any changes to any threshold on Budget Day, to the extent that there are any such changes.