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The National Budget (Who is responsible? (National Department of Finance -…
The National Budget
Who is responsible?
National Department of Finance - role set out by Constitution
Functions of National department of Finances
Co-ordinates financial relations between provinces
Manages National Budget preparation process
Controls implementations of the budget
National Treasury and Minister of Finances
National Budget
Budget speech - February
Explains how money will be raised and spent by the government in the next financial year
Financial year = 1 Feb to 31 March
Goals
Promote economic growth and progress
Rectify economic mistakes of the past
Tax
Types of Tax in SA
Direct Tax
tax charged directly to the person - responsibility can not be given to someone else
Indirect Tax
Tax charge which is transferred to someone else
Tax Avoidence
Legal - deduct expenses from income to pay less tax
Tax Evasion
Failing to declare income - illegal
Other
Capital Gains Tax - paid on capitals
Custom Duties - paid on imports/exports
Sin Tax - paid on alcohol.tobacco
Company Tax - tax placed on the profit of the firm
Skills Development Tax - on a persons salary
International Air Travel - tax for international travel
Carbon Emissions Tax - tax on petrol etc.
Tax to Generate Income
VAT
Value Added Tax
indirect tax charged on goods and services
Standard rated - pay tax
Zero rated - free of tax
brown bread
mielie meal
canned fish
PAYE
Pay as you earn
Payed by individuals who earn a salary
Progressive - more you earn, more you pay
Process of Drawing up National Budget
Each province draws up a budget
All these budgets are combined into one
Presented to parliament
Gets approved and signed off by president
Provinces claim their stake of Budget