Manuel optimistic about growth

Finance minister Trevor Manuel is a whole lot more optimistic about economic growth than economists in the private sector.
He is predicting a growth rate of 4.8% in 2007 - compared with forecasts of 4.4% in the private sector.

Manuel also revealed what most economists have predicted - that gross domestic product (GDP) grew by 4.9% last year. The final figures will only be available next week, when Statistics SA releases the GDP figures for the last quarter of the year.

The Budget Review said that continued strong investment and improved net trade would support growth in 2007. As the international environment improved and the supply capacity of the economy expanded, domestic growth was expected to accelerate to 5.4% in 2009.

Read more at FIN24.co.za

Sinners coughing up

It's enough to make a ou give up smoking. And drinking.
Well, maybe not drinking. But when you go to the pub now, you're going to have to bleddy walk, because he's bleddy put up the price of petrol as well.

Finance Minister Trevor Manuel on Wednesday announced the customary increases in sin taxes - the government's cut on cigarettes and booze - and a hike in both the fuel and Road Accident Fund levies.

Read more from FIN24.co.za

Retirement nest set to grow

People saving for retirement would see their nest eggs significantly enhanced when the retirement fund levy was abolished next month, the Life Offices' Association said on Wednesday.
Significant strides had been made in reforming the South African retirement savings environment in the past year, said its chief executive Gerhard Joubert.

Read more at FIN24.co.za

S. Africa's Manuel to Propose Compulsory Pension Plan

South African Finance Minister Trevor Manuel may forecast the country's first budget surplus since at least 1960 tomorrow and propose a compulsory pension and medical plan to increase savings by individuals.

In his 11th budget, Manuel probably will revise his forecast for a deficit of 0.4 percent of gross domestic product in the year that ends March 31 after a tax windfall, said Arthur Kamp, an economist at Sanlam Investment Management. The finance minister starts his speech to parliament in Cape Town at 2 p.m.

A consumer spending boom, higher gold and platinum prices and a weaker rand have driven up profits in Africa's biggest economy. Now the government is seeking to increase savings and finance the investment needed to lift economic growth further.

Read more at Bloomberg.com

S.Africa may cut company taxes in Wednesday's budget

South Africa's government could offer much-needed tax relief for struggling companies on Wednesday when it unveils, as widely expected, the country's first budget surplus.

Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.

Read more at Reuters South Africa

Who'll be the Budget winners?

The government could offer much-needed tax relief for struggling companies on Wednesday when it unveils, as widely expected, the country's first budget surplus.

Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.

Read more at FIN24.co.za

Smokers, drinkers in for a shock

Although sin taxes - alcohol and cigarettes have seen an upward tax increase in the last few years, tax specialists predict that Finance Minister Trevor Manuel will announce a further increase on these items in this year's eagerly awaited Budget.

Read more at FIN24.co.za

Rand holds firm vs dollar on budget eve

South Africa's rand remained firm against the dollar on Tuesday morning, with traders forecasting a generally quiet session on the eve of Finance Minister Trevor Manuel's 2007 national budget speech.

The rand was a touch stronger at 7.0920 around 0640 GMT from a close of 7.1150 in New York on Monday.

In his proposals to parliament, Manuel is expected to announce the first ever budget surplus for Africa's biggest economy, a prospect that has helped boost government bonds over the past few days.

Read more at Reuters South Africa

Windfall tax details expected

Less than a year after appointing a team to investigate the potential for windfall taxes on South Africa's liquid fuel industry, Finance Minister Trevor Manuel is expected to announce details on the issue.

In his mini-budget speech last October, Finance Minister Trevor Manuel said he had received a comprehensive report from the team and that he would address the issue at the next full Budget

Read more at FIN24.co.za

Rand firmer, seen rangebound pre-budget

South Africa's rand started the week on a strong note on Monday and should hold largely around current levels as the market looked ahead to Wednesday's national budget announcement and the latest inflation data.

At 0705 GMT the rand was trading at 7.12115 per greenback compared to late Friday levels of around 7.20 and 0.5 percent firmer than New York's close of 7.1550.

Read more at Reuters South Africa

Another cut in transfer duties?

What experts expect from next week’s Budget speech

Transfer duties on property sales are expected to be reduced slightly in next week's Budget but the move will be nowhere near the significant reduction announced last year.

This is the view of many property players on what Finance Minister Trevor Manuel will state in the 11th annual Budget on February 21 2007.

Last year, Manuel increased the transfer duty threshold from R190 000 to R500 000.

Read more at MoneyWeb.co.za