Latest news with #FNBCommercial
The Citizen
3 days ago
- Business
- The Citizen
Bad news for meat lovers in South Africa
Meat has become the biggest driver of food inflation. The outbreak of foot-and-mouth disease (FMD) in South Africa has led to a significant increase in meat prices over the past three months. FMD is a highly contagious viral disease of livestock that has a significant economic impact. The disease affects cattle, swine, sheep, goats and other cloven-hoofed ruminants. Over the past months, SA has seen outbreaks in Gauteng, Limpopo, the Eastern Cape and the Free State. Recently, the department of agriculture lifted restrictions in the Eastern Cape and Limpopo provinces after implementing intensified efforts to contain the spread of the disease. ALSO READ: Will SA run out of beef and chicken? Animal disease hits SA's top producer — what it means for consumers Meat prices Paul Makube, senior agricultural economist at FNB Commercial, said meat was the biggest driver of food inflation, surging to a 25 month high of 6.6% year-on-year (y/y) and rising by 2.2% month-on-month (m/m) in June 2025. 'The disease-induced supply constraints underpinned the upswing in meat prices in the past three months,' he said. Due to the disease outbreak, there was a short supply of livestock, mainly cattle. This resulted in meat becoming more expensive. Meat under threat Makube added that while farmers were trying to control the FMD outbreak, the poultry industry also experienced a shortage threat. An outbreak of avian flu, also known as bird flu, in Brazil let to imports from the country being banned. Bird flu is a contagious viral disease that affects both domestic and wild birds. The ban caused panic in the market, as Barzil is the major source of mechanically deboned meat (MDM), which is used in the manufacturing of products such as polony and viennas. 'SA is a net importer of MDM due to lack of domestic capacity,' Makube said. ALSO READ: Bird flu: worry not, it is safe to eat eggs and chicken Ban lifted However, the department of agriculture and the Brazilian government came to an agreement and partially lifted the ban. Chicken from states in Brazil that have not experienced the outbreak of bird flu can export chicken to SA. Makube said this move might ease pressure on chicken prices in the medium term. 'While the FMD situation remains sticky with new outbreaks reported in the Free State and persisting in KZN, recent developments are that slaughtering has resumed in major feedlots with producer prices already off the boil early in July 2025'. Food inflation He added that South Africa's food inflation edged higher to 3% y/y in June 2025 relative to May's 2.8% y/y, underpinned by gains in core items and food and non-alcoholic beverages (FNAB), but still came below expectations of a 3.1% spike. 'Our analysis of the FNAB shows a 0.3 percentage point jump from the May level to 5.1% y/y in June. The food sub-index rose by the same margin from the previous month to 4.7% y/y choked by meat. 'However, monthly, food inflation slowed from 1.2% m/m in May to 0.7% m/m in June 2025, led by the fruits and nuts subcategory, which declined for the fourth consecutive month to -2.4% m/m.' The future 'In terms of the food inflation outlook, downside risks include a persistent rand exchange rate appreciation, weak international crude oil prices, bulging global grains stocks outlook (+586 million tons) and the consequent downside pressure on prices, as well as the potential recovery in livestock slaughter rates if the FMD situation dissipates further.' NOW READ: Here are the economic and social impacts of bird flu
The Citizen
12-06-2025
- Business
- The Citizen
Here is how to navigate tax as a sole proprietor
The tax season begins on 7 July and runs until 20 October. Here is how to navigate tax as a sole proprietor. Picture: iStock With tax season fast approaching, it is essential for taxpayers, especially sole proprietors, to navigate the season with ease. Running your own business as a sole proprietor in South Africa is one of the quickest and simplest ways to become your own boss. No complex registrations, no corporate red tape – just you, your business and full control over decision-making and profits. Unlike registered companies, sole proprietors are personally liable for all tax obligations. That means your business income is taxed as part of your personal income, and you will need to submit the right forms, keep clear financial records and fully understand which expenses you can, and cannot, deduct to reduce your tax burden. 'A well-managed financial system is critical for the growth and success of any small business,' said Wandile Mnguni, Head of Transactional Banking Products and Payments at FNB Commercial. ALSO READ: Almost time again for tax season: Here's when you will be auto-assessed Here are tips to navigate taxes with ease: 1. Register for tax and submit the right forms Mnguni said every sole proprietor must be registered with the South African Revenue Services (Sars) for income tax, and also needs to register as a provisional taxpayer. This means you must submit two IRP6 returns during the tax year (to estimate and pay tax in advance). At the end of the tax year, you will submit an ITR12 (your annual income tax return) to declare all earnings and expenses in your personal and business capacities. Where your business has made taxable (VATable) supplies exceeding R1 million in any consecutive 12-month period or where you reasonably expect to exceed this threshold in the next 12 months, VAT registration is mandatory. If your taxable (VATable) supplies are above R50,000, you can choose to voluntarily register for VAT. 'Being registered for VAT allows you to claim VAT on business expenses. Just remember this adds a significant administrative burden to your operations because you need to work out your VAT every month or two months, depending on the VAT category.' 2. Understand what you can and cannot deduct Mnguni advises that to minimise your tax liability, you should take advantage of allowable business deductions. While it is important to know the finer details of what can and cannot be deducted, generally, as a sole proprietor, you can deduct the following, provided you have adequate supporting documentation: Business-related rent, office supplies, advertising and salaries Travel and vehicle costs (but only for business-related travel, with a proper logbook) Home office expenses if you use a dedicated space for business Internet and phone bills, but only the portion used for business ALSO READ: Looming tax deadline and glitches cause frustration 3. If you have employees, you must deduct their tax 'As a sole proprietor registered with Sars, you can take on employees as your business grows. If you hire employees, your monthly tax obligations increase. 'You will need to register for Pay-As-You-Earn (PAYE) and deduct tax from salaries every month to pay over to SARS via an EMP201 return. You will also have to contribute to the Unemployment Insurance Fund (UIF) on behalf of each employee and register for the Skills Development Levy (SDL) if your payroll exceeds R500 000 per year.' Failing to comply with these obligations can result in severe penalties from SARS; therefore, ensure you are compliant from the outset. 4. Be smart to reduce your tax bill legally He added that, in addition to the amounts you can deduct from your taxable income for ongoing operational expenses, there are also other allowable ways to reduce taxable income and pay less tax: Contribute to a retirement annuity. This allows you to deduct up to 27.5% of your total taxable income, reducing your annual liability. Donate to qualifying public benefit organisations. Sars allows deductions for donations to registered public benefit organisations (with a Section 18A certificate). 5. Keep good records 'Sars requires businesses to keep records of all income and expenses for at least five years. Store invoices, receipts and tax documents securely to ensure compliance and simplify audits. 'Proper record-keeping also helps when claiming deductions or defending yourself in the event of a SARS audit.' 6. Consult a professional He recommends seeking professional tax advice from a registered tax practitioner to optimise deductions and ensure full compliance with Sars regulations. 'Having an expert in your corner ensures your business remains tax-efficient while avoiding unnecessary penalties.' NOW READ: Here is how much Sars boss and others in the government earn
