Finance Minister Tito Mboweni, on Wednesday, delivered his Medium-term Budget Policy Statement to South Africa in Parliament. File Photo: IOL

DURBAN – Finance Minister Tito Mboweni on Wednesday delivered his Medium-term Budget Policy Statement to South Africa in Parliament. 

In his speech the Finance Minister highlighted that the South African Reserve Bank has, during a very difficult period, kept inflation stable.

Mboweni also declared a substantially increased profit share to the government. 

"The bank is a strange creature of statute – even though we do not own it, the National Revenue Fund receives 90 percent of the profits, after provisions ordinarily made by bankers. It is a beautiful arrangement – we do not have to invest any money in the Bank, but we get almost all the profits plus taxes," said Mboweni.  

In his address Mboweni also said that they will be taking stronger measures to fight illegitimate cross‐border flows and tax evasion.

The approach to money laundering will be reviewed by the Financial Action Task Force and steps are also being taken to strengthen cooperation between the Financial Intelligence Centre and the South African Reserve Bank as well as the South African Revenue Services.

In an effort to promote investment and to reduce unnecessary burdensome approvals, by Budget Day, the South African Reserve Bank will propose a more modern, transparent and risk‐based approvals framework for cross‐border flows.

The Finance Minister also said that the rules on active currency hedging, loops, and mortgages for individuals living and working in South Africa will be reformed. In an effort to support regional integration, the HoldCo regime will be extended to all banks.

BUSINESS REPORT ONLINE