Budget "promotes stability"
2009-02-19
THE CEO of the Pam Golding Property Group, Dr Andrew Golding, is positive about last week’s national budget that was delivered by Trevor Manuel, minister of finance. “Once again the minister is to be commended on presenting a budget which focuses on key issues which include sustaining economic and employment growth, promoting investment, increasing investment in infrastructure, fighting crime, alleviating poverty and fostering fiscal sustainability despite the deteriorating global scenario. “In addition, the personal tax relief is to be welcomed in terms of increasing take-home pay for cash-strapped consumers,” he says. Ongoing investment in infrastructure, including roads, public transport and housing programmes is positive, Golding added. “These are steps to encourage energy efficiency and reduce harmful emissions, with tax incentives for companies to invest in energy-efficient technology investment in green buildings. “It is regrettable that the fuel levies are to increase by 23 and 24 cents per litre in respect of general petrol and diesel levies, in addition to the 17,5 cents increase in the road accident fund levy, as fuel remains a significant cost factor for South Africans and the economy. “The minister is to be lauded for encouraging banks to extend credit to worthy customers as it has become apparent that generally, financial institutions are currently going beyond even the bounds of the stringent NCA regulations. “Raising the Capital Gains Tax (CGT) exclusion on the sale of a primary residence from a gross value of R1,5m to R2m will assist home sellers. “This is to be welcomed although it is disappointing that the much hoped for increase in the transfer duty threshold - which currently stands at R500 000 - did not materialise. Increasing this to R750 000 or more would have had the effect of considerably contributing towards making home ownership more affordable and within the reach of consumers, particularly first time buyers. “This would be a reasonable request given the fact that despite the current status of the property market, the cost of acquiring a home has increased significantly.”
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