Durban Chamber comments on budget speech
President of the Durban Chamber, Nigel Ward, highlighted certain issues from the speech which was delivered by Tito Titus Mboweni on 24 February.
THE Durban Chamber of Commerce and Industry has commented on the 2021 Budget Speech.
President of the Durban Chamber, Nigel Ward, highlighted certain issues from the speech which was delivered by Tito Titus Mboweni, Minister of Finance of the Republic of South Africa on Wednesday, 24 February.
Ward said the Durban Chamber believes there is an urgent need for economic reforms to ensure the economic recovery of South Africa.
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He said the Chamber welcomes the Minister’s remarks on altering the structure of this economy by lowering barriers to entry, raising productivity, and lowering the cost of doing business.
“Policies and decisions of the government need to be in the best interest of the business community and more deliberate in order to encourage and empower inclusive and sustainable economic growth and development,” he said.
Ward said the Durban Chamber was deeply concerned about South Africa’s debt outlook.
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“We believe there is an urgent need for government to limit its borrowing and reduce debt levels. The Durban Chamber urges government to proactively reduce unnecessary expenditure,” said Ward.
He said he felt an increase in fuel levies by 27 cents per litre for petrol was going to put excessive pressure on the KwaZulu-Natal economy. .
Ward added that the Chamber also felt the proposed increase in excise duties on alcohol and tobacco products was concerning.
“The Covid-19 pandemic has impacted the liquor and tobacco industry negatively. Prolonged periods of sale bans have translated to huge losses. Hence, an increase will simply threaten the sustainability of this industry,” he said.
He said, however, that the Chamber believes the corporate income tax decrease to 27 per cent for companies with years of assessment commencing on or after, 1 April 2022, will provide relief to businesses and promote economic growth.
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Regarding the issue of crime in South Africa, Ward said the Durban Chamber acknowledged and supported Minister Mboweni’s commitment to combatting corruption.
“There have been numerous scandals that have exposed the high levels of corruption within South Africa and have negatively impacted our country’s image as well as our tourism and investment profile, both locally and internationally. Not only has this had a negative impact in terms of foreign investor confidence but it has severely impacted citizens’ trust in government and its dealings,” he said.
“Government in partnership with business and other stakeholders need to actively devise a strategy to positively reposition South Africa’s investment profile so that it is seen as a preferred investment and tourism destination. This will stimulate investment, which will encourage sustainable and inclusive economic growth as well as opportunity and job creation,” he said.
He added that government needs to introduce tried and tested private sector performance management models within the public sector.
“The Durban Chamber reiterates its call for remedial action and punitive consequences for corrupt officials. So far, despite the abundance of evidence and the brave actions of whistle-blowers, numerous corrupt officials continue to hold office and to receive government salaries while awaiting state action that never comes. No-one has been charged, tried and compelled to face the consequences of corruption. Corruption and state capture are a severe economic crime in South Africa that significantly exacerbates our socio-economic challenges. The only time we will see real change is when severe consequences are actioned against perpetrators involved in state capture and corruption,” he concluded.
Caxton Local Media Covid-19 reporting
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