Star 2025-04-02

The South African Revenue Service (Sars) collected a record gross revenue of R2.303 trillion for the 2024/25 fiscal year, exceeding expectations by nearly R8.8 billion, a day before parliament votes on the National Budget. Sars Commissioner Edward Kieswetter hailed the outcome as a testament to the agency’s efficiency, noting that it collected R114bn more than the previous year’s R1.741trl. “I am pleased that the R447.7 billion returned into the hands of taxpayers is good for the economy,” Kieswetter said, referencing the highest-ever refund payout, up 8.2% from R413.9 billion in 2023/24. However, he said he remained "deeply concerned about the ever-present threat of refund fraud and abuse of the system". This as Sars thwarted R146.7bn in impermissible refunds. The net revenue of R1.855 trillion reflects a tax-to-GDP ratio of 24.8%,…

The nation is waiting on tenterhooks as the joint Standing and Select Committees on Finance are set to vote on the fiscal framework on Wedneday, approving or rejecting the National Budget tabled by Finance Minister Enoch Godongwana last month. Godongwana's Budget proposed adjusting the VAT increase to 1% over the next two years, but the fragility of the Government of National Unity (GNU) has been laid bare since then as the Democratic Alliance (DA) said it would not support the proposed VAT increase. Frank Blackmore, lead economist at KPMG South Africa, told Business Report on Tuesday that all options were still a possibility in terms of outcomes. "The most beneficial outcome for the country would be one in which expenditure cuts are made and the VAT increases are scrapped with…

March new vehicle sales were the best since March 2023, nudging the 50 000-unit volume The automotive industry has expressed confidence that it would be resilient enough to withstand the 25% import tariffs imposed by the Trump administration in the US as domestic new vehicle sales surged by 12.5% in March. This comes after export sales for new vehicles recorded an impressive increase of 9 354 units, or 31.1%, reaching 39 477 vehicles in March, which is 15.7% higher than March 2023 exports. The Automotive Business Council (Naamsa) on Tuesday said this marked the first export growth in 10 months, signalling renewed momentum in South Africa’s global trade position. Domestic new vehicle sales also surged, with aggregate sales reaching 49 493 units - an increase of 5 504 units, or…

The rand weakened slightly on Tuesday, trading at around R18.40 against the dollar and nearing a one-month low, as investors assessed economic data and awaited details on US President Donald Trump’s proposed tariffs. The currency’s decline was exacerbated by prolonged domestic budget negotiations, with markets jittery ahead of a critical parliamentary vote. Trump, dubbing Wednesday "Liberation Day," has pledged reciprocal tariffs on "all countries," with speculation pointing to a potential 20% levy on most imports. While no final decision has been confirmed, the uncertainty has unsettled global markets, adding pressure to the rand, already strained by ongoing talks between South Africa’s ruling ANC and the Democratic Alliance over the National Budget. The rand briefly rallied earlier this week on hopes of a budget breakthrough, but Tuesday’s slide reflected renewed caution.…

Post-apartheid era trade agreements like the Southern African Customs Union (SACU) - European Free Trade Association (EFTA), the Southern African Development Community (SADC), and numerous other multi-and-bilateral trade agreements have contributed to a significant increase in agricultural exports from R22.4 billion in 2004 to R251bn in 2024. Due to the recent rate of output growth, increased efforts made through the implementation of the Agriculture and Agro-processing Master Plan (AAMP), industry-specific master plans, and various transformative initiatives, the agricultural sector’s production is anticipated to increase further as a new generation of farmers enters the commercial space. This calls for the exploration of new markets, but it is crucial to emphasise that while the country navigates the global space to open more markets, these markets must be as diversified as possible in…

Businesses in the manufacturing sector in South Africa are expecting conditions to deteriorate over the next six months on the back of intermittent power supply and the souring relations between South Africa and the United States. South Africa is currently in the crosshairs of the Trump administration and diplomatic relations have deteriorated over the government’s passing of the Land Expropriation Act and its stance on the Palestine-Israel conflict. The business sector is also dealing with intermittent power supply as Eskom implemented load shedding for a few days in every month since the beginning of the year, albeit it was soon suspended. The seasonally adjusted Absa Purchasing Managers’ Index (PMI) released on Tuesday remained in contractionary territory for a fifth consecutive month despite inching up by 4 points to 48.7 in…