WEDNESDAY, 9.00AM
PARLIAMENT’S finance committee has thrown out Trevor Manuel’s proposed changes to the tax on housing benefits — because it could hurt low and middle income earners who would lose an estimated 20% of their net income.
The amendment was proposed to close a widely abused loophole, but critics have warned that it imposes a new and onerous financial burden on low income earners who have recently aquired houses. Committee members will meet Manuel next week to discuss their objections to the clause.
Meanwhile, the SA Revenue services have also objected to another proposal in the budget, that the cash basis for paying VAT be scrapped in preference for invoicing. SA Revenue services have proposed that cash continue to be allowed for purchases of up to R100 000.