Generally the rabble-rouser-in-chief, one has to sit up and take notice when EFF leader Julius Malema deems the 2017 Budget "well-thought of and balanced".
Hence the round of applause (though there was less clapping and enthusiasm than in previous years) after Finance Minister Pravin Gordhan tabled the R1.56 trillion Budget in the National Assembly on Wednesday.
Not many will shed a tear that those with a taxable income in excess of R1.5 million will find themselves significantly worse off. Those earning R125 000 a month and above will pay a tax rate of 45 percent.
Less clapping and enthusiasm this year..... hope Members are not feeling the wrath of those unused cable ties. #Budget2017
— robertmarawa (@robertmarawa) February 22, 2017
It's not often one agrees with Malema, but he did point out that while "individuals are the ones that are the biggest contributors to the fiscus of South Africa, wherein corporate tax declined by 3 percent this year".
Malema says a radical policy must be introduced to ensure "maximum tax collection from corporate, while the introduction of state-owned companies in the strategic sectors of the economy would also increase money to the state". Judging by the performance of state-owned companies in general and their governance issues the last proposal is not one to get excited about – but, yes, let corporates pay more tax.
Those who smoke and drive (fuel levy) will also be choking (on their fumes), because they will have to pay more tax.
Sugar addicts, however, will be elated that the government's proposed 20 percent sugar tax will not come into effect from April as originally mooted. Gordhan said further consultations are currently taking place on the tax on sugary beverages – the proposed design has been revised to include both intrinsic and added sugars (good to remember when you ask for coffee with milk, and two sugars – one intrinsic and one added).
The minister likes "Distribution". Unfortunately we don't have much to distribute in this country. We have 2 create the wealth. #Budget2017
— Phumlani M. Majozi (@PhumlaniMMajozi) February 22, 2017
Several taxpayers find themselves in the proverbial intensive-care unit and won't throw away their crutches yet on hearing that the medical credit which members of medical aid funds can claim against their tax liability has increased from R286 to R303 for the first two dependants, and thereafter from R192 to R204 per month per dependant.
If only we had friends in high places like SAA, which "remains technically insolvent and will receive a further bailout from the government in the coming financial year".
SAA pared its losses from R5.6 billion in 2014/15 to R1.5 billion in 2015/16, and its going concern status depends on state guarantees totalling R19.1 billion. It's liquidity problems were expected to persist over the medium term (especially with the same chief pilot).
The merger of SAA with South African Express, and the introduction of a strategic equity partner, are still being considered.
#Gordhan looks exhausted. #Budget2017
— Kaveer Beharee (@UbiquityZA) February 22, 2017
The DA, as always, "expected more". It expected Gordhan to announce more cuts for the government and reprioritising funding to programmes to serve the young and unemployed.
"This year the government will be spending R14.3 billion on bloated executives and legislatures throughout the country. We think that there is further scope for spending cuts," said DA spokesman on finance David Maynier.
However, about 2 000 small, medium and micro enterprises (SMMEs) will be provided with financial support to help them become competitive, sustainable, job-creating firms, the finance minister said. A total of R3.9 billion will be allocated for SMMEs and co-operatives over the next three financial years.
Malema also applauded initiatives for the government to get bargains in procurement of goods and services, as well as ensuring that suppliers are paid on time. Yes (sigh), if only the basics were attended to...
"That is a good initiative that is combating corruption, and because people must be paid for what they have delivered. No one should hold payment in exchange for bribes even when people have done a quality job," Malema said.
There's nothing like a slap on the back from Malema (instead of a slap in the face) to make the embattled finance minister feel better, who allegedly has Brian Molefe (of Saxonwold Shebeen infamy) ready to pounce on his job.
"Gordhan was giving South Africa some form of hope, and must be given support to weather the dark political cloud hanging over him. We may not agree with him with regard to everything, but must be applauded for standing up to rot and corruption," Malema said.
But let's leave the last word to Gordhan (and we hope the country's MVIP was listening): "There is a challenge for us to set a new example for all. Let us not side-step this task. Ours is the collective responsibility, despite many distractions, to live up to the expectations of Oliver Tambo, Walter Sisulu, Beyers Naude, Nelson Mandela, Albert Luthuli, Yusuf Dadoo, Lilian Ngoyi and many others.
"In this way we will honour the confidence and trust of our people. In this way our transformation efforts will serve all South Africans."