Study identifies eight policies to alleviate poverty
WATCH | Poverty crisis in SA's economy
Poverty is also high in the in province.
A new study has identified eight policies that can help the country's economic hub reduce poverty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
29 minutes ago
- The Citizen
Haven't filed your tax return yet? Here's how to avoid mistakes
Tax season does not have to be a stressful time if you approach it the right way and ensure you do not make common mistakes. It is tax season, which means it is time for taxpayers to stress about getting their tax return right to ensure they do not pay too much tax or too little and maybe, just maybe, get a few rands back from Sars. This year, Sars' tax systems and officials are expected to be more efficient and focused on collecting revenue, which means you must be sure you included everything in your return, tax manager at Allan Gray, Meagan Fraser, says. 'For the majority of South Africans, the reversal of the proposed 0.5% VAT increase earlier this year provided a sense of relief in terms of their monthly budgets. However, the loss of the anticipated revenue from this proposed increase resulted in a R75 billion shortfall in the national budget.' This, she points out, resulted in a renewed drive on the part of Sars to ensure that outstanding taxes are accurately and efficiently collected. 'Its efforts during tax-filing season will therefore be focused on taxpayer compliance and collecting outstanding taxes.' ALSO READ: Common pitfalls to avoid this tax season However, she says, this does not necessarily mean you will pay more tax. 'Sars cannot collect more tax from you than you owe. As a taxpayer, you have the right to consistent and impartial application of the law, but you also have the obligation to submit your return with complete and accurate information to Sars on time.' How to make sure your auto-assessment is correct However, not everyone has to submit a tax return. If you earn below R500 000 a year and have no deductions and only one employer, you are exempt from filing a tax return. According to Sars, 5.8 million taxpayers are auto-assessed this year, which means they do not have to prepare their own returns. However, she warns that you must still carefully check the assessment. 'Sars uses the data they received from employers, financial institutions and medical aid schemes to pre-populate amounts on behalf of taxpayers. 'The intention is to improve the accuracy and verifiability of the amounts completed on returns and to assist Sars in issuing estimated assessments for taxpayers who have relatively simple tax affairs.' Fraser says if you were auto-assessed, Sars will notify you via SMS or email. 'It is up to you to ensure that the information Sars used in your return is accurate and complete by cross-checking it against the tax certificates your service providers issued. 'If you disagree with any amounts Sars used, you must query the amounts directly with the relevant third-party data providers and request that they resubmit the corrected information to Sars.' This would be amounts such as your salary and medical aid payments. ALSO READ: Beware of these scams during tax season If you have any additional income or deductions not included in your return, you will have to add the relevant information manually. If you accept your auto-assessment, Sars will pay you any money it owes you within 72 hours. Getting your tax documents ready If you are not auto-assessed, you have to complete your tax return. The first step is to get your tax documents ready. Fraser says this include an IRP5 from your employer, an IT3(b), IT3(c), IT3(s) and a retirement annuity fund contribution certificate from your investment manager, your medical scheme tax certificate and proof of qualifying medical expenses, as well as documents related to any rental properties. 'Remember, you are required to keep copies of all supporting documents for five years from the date of submitting your return, as Sars may request these documents to verify the information you declared.' ALSO READ: Tax season: Here is why you need to prioritise filing for returns With tax season in full swing, Fraser urges taxpayers not to wait until the last moment to submit their return to avoid incurring penalties. 'It is important to ensure you comply by filing your income tax return accurately and by the set deadline, as well as settling any outstanding taxes in full and on time.' Most frequent error taxpayers make Adriana Taljaard, an accountant from AT Accounting & Taxation Solutions, who works with Procompare, an online platform that connects South Africans with local professionals, says the most frequent error taxpayers make is forgetting to add their medical-aid deductions. Procompare's analysis of thousands of requests for accountants reveals a key taxpayer challenge: Sars auto-assessments shows these key insights:
IOL News
an hour ago
- IOL News
Why South African taxpayers should double-check their auto-assessments
Tax With millions of South Africans auto-assessed by Sars in 2024, financial experts warn of potential errors that could cost taxpayers. Discover how to ensure your auto-assessment is accurate and avoid costly mistakes. Image: Freepik Millions of South Africans were auto-assessed by the South African Revenue Service (Sars) in 2024, a move designed to simplify the tax season. But with convenience comes risk. Financial experts warn that auto-assessments, which rely solely on third-party data, can contain critical errors that might cost taxpayers dearly if left unchecked. According to Procompare, an online platform that connects South Africans with local professionals, Sars auto-assessed around 3.5 million individuals in 2024, nearly half of the country's tax base. The process draws on pre-submitted data from employers, banks, medical aids, and retirement fund administrators to estimate a taxpayer's return, but the estimation isn't always spot on, it says. Procompare says errors may include omitted income, overlooked deductions, or incorrectly reported figures. "An auto-assessment can be convenient if your tax affairs are simple, but don't assume it's 100% correct," says Adriana Taljaard of AT Accounting & Taxation Solutions, an accountant affiliated with Procompare. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Tax experts list several common pitfalls with Sars auto-assessments: Incomplete or missing third-party data : If employers or financial institutions delay or fail to submit information, key income or deductions won't reflect in the auto-assessment. Incorrect reporting : Errors from banks, medical schemes, or other entities can result in Sars populating incorrect figures. Exclusions of non-standard deductions : Expenses such as home office costs, travel allowances, charitable donations, and unreimbursed medical expenses are not included unless captured by third parties. Undeclared personal income streams : Rental earnings, freelance work, or side businesses not reported to Sa rs wo n't feat ure in auto-calculations, potentially leading to under-reporti ng. Taljaard says Sars itself cautions that there 'might be some income sources and certainly expenses... of which Sars may not be aware', reinforcing the need for taxpayers to validate their data. "For the additional income, a P&L must be compiled in order to submit the profits or losses that the additional source of income," advises Rushaan Toefy, owner of Rushaan Toefy Financial Services in Cape Town. "As for the travel allowance, a complete logbook detailing must be provided in order for Sars to account for the extra tax savings." Procompare says if you suspect your auto-assessment may be flawed, prompt action is essential. Here's how to respond: Log into Sars eFiling and verify data : review the third-party certificates used and compare them with your own (IRP5s, IT3(b), medical tax certificates). Correct errors at source : contact banks or employers to amend inaccuracies and resubmit official data to Sars . File a complete ITR12 return : add missing income and deductions, ensuring your final return reflects the full scope of your tax situation. Submit before the deadline : most individuals must file by around 20 October. Failure to act means Sars' assessment becomes legally binding. Retain supporting documentation : keep evidence of any additions or changes for at least five years in case of an audit. Confirm your updated assessment : Sars will issue an ITA34 with your revised outcome. Review it thoroughly to ensure accuracy.
The Citizen
2 hours ago
- The Citizen
SA's electricity price is soaring: Why protests are often the only way for people to be heard
Electricity prices have skyrocketed over the last twenty-five years at approximately four times the rate of inflation. Millions of unemployed South Africans, many of whom survive on a Social Relief of Distress Grant government grant of R370 (about US$21) per month, are not able to pay for electricity and still afford food and shelter. In the working class community of Thembisa in South Africa's industrial heartland of Gauteng, the local government recently tried to make all families pay a fixed monthly fee of R126 (US$7) for electricity. But the residents could not afford this and in late July, occupied roads and shut down the area. Within a day, the mayor scrapped the electricity fee. Luke Sinwell, a scholar of popular history and grassroots mobilisation in South Africa, explains how protests might just be the only way for working class South Africans to make their voices heard. Is electricity affordable in South Africa? No. Electricity prices have skyrocketed over the last twenty-five years at approximately four times the rate of inflation. It is also crucial to view electricity prices in a socio-economic context. For example, the cost of electricity needs to be assessed relative to the disposable income of the household buying it. Low-income families spend up to twenty percent of their household income on energy, making electricity very unaffordable. ALSO READ: Thembisa protest raises risk of national unrest About half of all South African households (approximately 15 million people) don't have nearly enough food to eat. This means that the heads of impoverished or working class households (mostly women of Colour) are forced to decide between putting ideally nutritious food on the table and lighting their houses at night. They're forced to choose between using energy for heating to keep warm during winter or ensuring that their limited fresh food supplies stay cold so that they do not spoil. I'm part of a group of researchers who use the term energy racism to describe the systemic oppression that prevents Black working class people from accessing the electricity they need to survive and prosper. South Africans have been protesting for decades about high electricity prices. Why hasn't the problem been solved? There are weaknesses in South Africa's democratic process. Municipalities (local government) responses to the concerns and demands of communities tend to be shortsighted and inadequate. Currently, the major political parties in South Africa focus mainly on obtaining consensus at the polls through elections every five years. The South African president, Cyril Ramaphosa, is overseeing a 'National Dialogue' which he claims will allow the voices of ordinary people to be heard in the corridors of power. It's been designed to appear as an inclusive and democratic process. However, based on my previous research, I believe that hidden beneath the surface, government has largely already decided the agenda and a set of policies that the dialogue will recommend. The South African government is continuing to rely on market-oriented, neoliberal policies which serve profit at the expense of the working class. READ MORE: Experts warn of unintended consequences of giving in to Thembisa demands This guarantees that electricity prices will remain extremely high. It also means that the government will continue to lack interest in proactively engaging those very communities about the cost of electricity. It is useful to remember what happened in September 2011 in Thembisa. About 2 000 residents went to the streets to protest against electricity cuts. Schools were closed, at least 100 residents arrested for public violence, and rubber bullets fired at protestors by police. When the residents of Thembisa shut down their area again recently, the mayor, undoubtedly aware of this history, wanted to avoid a similar situation. This gave residents an advantage – they were aware that protests would jolt the authorities into a favourable response. This means that when local government does not take the initiative to discuss important matters like the price of electricity with residents, communities will inevitably create their own formations through which to mobilise and influence local politics and beyond. How effective are protests against high prices of basic services? Protests are often an immediate response to desperate communities faced with an acute economic crisis. The recent protest in Thembisa is also part of a broader trend of protests and collective action around the lack of electricity in townships and informal settlements in other parts of Gauteng. For example, my research over six years in the informal settlement of Thembelihle in the south west of Johannesburg, found that people burned to death in their shacks because local government had failed to provide electricity. Residents had no alternative but to rely on imbawula (a homemade brazier). This was coal and wood in an oven or tin connected to a makeshift pipe to let smoke out. Many shacks caught fire as a result. They negotiated with authorities for more than 10 years. READ MORE: Traffic delays after residents shut down Thembisa over electricity tariff hike [VIDEO] Still, Thembelihle residents had no effective way to access the levers of decision-making authority which could electrify their homes. So they accessed power on their own terms, forcing authorities to the negotiating table using protest. Following a three-week occupation in 2015, the government conceded to the basic demands to formally electrify a relatively small piece of land where they lived. A sizeable amount of R323 million would electrify 7000 homes. The politics of a community struggle which had once been criminalised and excluded from the halls of power was now enshrined in policy. What does the recent Thembisa electricity price protest tell us? It demonstrates that the most effective way for people to get the government to implement pro-poor decisions is not by voting or attending national dialogues hosted by presidents and parliamentarians. It is by organising in communities and engaging in mass actions which force those in power to concede to the people's demands. The recent protest also tells us that impoverished and working class residents cannot and should not be forced to pay more than they can afford for basic services. READ MORE: Land invaders erecting shacks dispersed with rubber bullets and stun grenades near Makhanda The municipality held Integrated Development Plan and budget meetings with residents a few months before the protests where they revealed the new electricity prices. But these meetings did not seem to acknowledge that the people of Thembisa could not afford to pay. The mayoral decision to suspend the new electricity charges in Thembisa demonstrates that when basic services fail communities, protests work. They also just might be the only reliable means by which ordinary people can access the levers of government policy. This article was republished from The Conversation under a Creative Commons license. Read the original article here.
