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The Star
2 days ago
- Business
- The Star
Unlock your tax savings: a guide to navigating auto-assessments
Dieketseng Maleke | Published 1 week ago As the 2025 tax season gets underway, millions of South Africans have already received their auto-assessments from the South African Revenue Service (Sars). But while these automatically generated assessments may seem like a welcome convenience, financial experts are urging taxpayers to proceed with caution before simply clicking "accept." 'Auto-assessments should not be accepted blindly,' warns Thys van Zyl, CEO of Everest Wealth Advisory. 'Tax season is, in fact, a golden opportunity to reduce your tax liability and potentially even receive a refund.' Van Zyl stresses that although Sars uses third-party data to calculate auto-assessments, these calculations may not include all the deductions you're entitled to. 'The reality is that not all allowable deductions are necessarily included. Additional deductions may include extra medical expenses, charitable donations, and home office or travel allowances. If you simply accept the auto-assessment, you may get less back than you're actually entitled to," he says. According to Van Zyl, if you've already received an auto-assessment and refund but realise you've missed important deductions, all is not lost. Taxpayers can still submit a tax return manually to correct or supplement the information provided by Sars. 'It's often wise to set aside the refund until the amended return has been processed. Just as it is every taxpayer's responsibility to ensure their tax return accurately reflects their income and expenses, they must also make sure they are refunded if they've overpaid or qualify for deductions," says Van Zyl. He says, importantly, taxpayers remain legally accountable for any errors, even if those originate from Sars' side. 'That's why you should always make sure your information is complete. If you notice any mistakes or omissions, you must request an amendment before accepting the assessment. Claiming that Sars calculated it and that it must therefore be correct will unfortunately not hold up. If you don't submit the correct information, it may result in penalties and interest on overdue tax – or, in severe cases, even criminal consequences," Van Zyl says. The 2025 tax season officially opened on July 7, with the rollout of auto-assessments. Taxpayers who want or need to submit returns manually can do so from July 21 to October 20, 2025, while provisional taxpayers have until January 19, 2026. According to Sars, 5.8 million taxpayers received auto-assessments this year, up from 5 million in 2024. Sars says 99.6% of those assessments have remained unchanged by taxpayers so far, and R10.6 billion in refunds have already been paid, most within 72 hours. Still, Van Zyl encourages South Africans to take a proactive approach: 'Tax season is an opportunity to take control of your finances and make the most of legal deductions and benefits.' Van Zyl says the most powerful tools available to taxpayers are: Tax-Free Investments: You can invest up to R36,000 per year (or R500,000 over your lifetime) tax-free, with no tax on dividends, interest, or capital gains. Retirement Contributions: You can deduct contributions to retirement funds up to 27.5% of the greater of your taxable income or remuneration, capped at R350,000 annually. 'It's smart to ask yourself during tax season: How can I make my money work for me? Even small contributions to a tax-free savings account or retirement annuity can make a big difference over time, especially thanks to the power of compound growth," Van Zyl says. Sars says the auto-assessment process is part of its broader drive to become a 'smart, modern' tax authority, using artificial intelligence, machine learning, and big data to streamline compliance. So far, more than 2.1 million taxpayers have engaged Sars through its digital channels, including: Online Query System (SOQS) WhatsApp (707,000 queries) Lwazi Chat Bot eFiling and the SARS MobiApp, which saw over 10.2 million logins since July 4. Sars commissioner Edward Kieswetter praised the success of this year's auto-assessment initiative, calling it 'a game changer' in making tax compliance easier. 'Ultimately, our aim is to make the best service to be no service at all. I encourage taxpayers to use our digital channels rather than queue at our Service Centres," he says. However, Sars also cautions taxpayers to be alert to scams. They remind users that Sars will never request engagement through unofficial links and urges the public to protect their login details and consult only registered tax practitioners. Suspicious messages or phishing attempts should be reported to [email protected] . 'Make sure your details are up to date, keep all necessary documentation, and use the legal mechanisms available to reduce what you owe – or to get something back. If you plan smartly and file on time, you can not only stay compliant but benefit from the process as well," Van Zyl says. Helpful Sars resources for 2025 Filing Season: Website: Online Query System: SOQS WhatsApp: 0800 117 277 (send 'Hi') SARS AI Virtual Assistant: Available 24/7 on the website Dial: 134 7277# for mobile access 7277# for mobile access YouTube: @sarstax PERSONAL FINANCE
IOL News
4 days ago
- Business
- IOL News
What to expect from the South African Reserve Bank's interest rate decision this week
As the SA Reserve Bank prepares for its interest rate decision on July 31, economists discuss the potential for a rate cut and its implications for consumers facing rising food prices and inflation. Image: IOL / AI The prospects of a rate cut ahead of the SA Reserve Bank's (SARB) Monetary Policy Committee's (MPC) next interest rate decision on July 31, appear positive, but it's not a clear-cut case, economists said on Monday. 'The market currently expects a cut in the key repo rate by 25 basis points — which would be the third reduction this year,' said Thys van Zyl, Chief Executive of Everest Wealth Advisory. 'A lower interest rate would bring welcome relief to consumers.' He warned that while headline inflation remains relatively low, food price inflation is now at its highest level in over a year, which poses risks to interest rate expectations as well as consumer spending. Dr Elna Moolman, Standard Bank's group head of macroeconomic research, also believes the current inflation rate supports the case for an imminent interest rate cut, and although she expected inflation to rise over the coming months, it should remain 'reasonably benign'. However, Van Zyl warned that the central bank may be reluctant to cut rates too aggressively if global food and oil prices continue to trend upwards. 'Earlier this year, it was anticipated that the Reserve Bank could cut interest rates one or two more times in 2025," Van Zyl said. "Following the January and May reductions totalling 50 basis points, it's increasingly likely that we'll see only one more cut this year – and perhaps not before year-end.' Uncertainty surrounding the proposed 30% tariffs on South African exports to the US is another factor weighing on the economy, he added, as these could impact export-driven industries such as manufacturing, mining and agriculture. 'This uncertainty, combined with rising inflation, puts policymakers in a difficult position – trying to support growth while also protecting the rand and price stability.' Consumer Price Inflation (CPI) rose to 3% in June, up from 2.8% in May. This was the first time in three months that inflation returned to within the Reserve Bank's 3% to 6% target range. However, CPI remains well below the 5.2% seen this time last year. Food prices remain higher than expected, particularly red meat, after a bout of the foot-and-mouth disease, yet consumer goods inflation remains subdued. Johann Els, chief economist at Old Mutual, said the weak overall pricing pressure in the economy justifies a further 0.25 percentage point interest rate cut this week. ALSO READ: Understanding the impact of rising inflation on SA's interest rates Potentially lower inflation targets later in the year or in 2026 could also jeopardise the interest rate situation for South Africans going forward. South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Experts argue that a lower inflation target would improve price stability, reduce borrowing costs, and enhance investor confidence in the long term. However, many feel it would entail some short-term 'pain' for the sake of long-term gain. Yet tightening monetary policy could be a dangerous move in the current economic climate, warns Frederick Mitchell, chief economist at Aluma Capital. 'Conventional wisdom suggests that raising interest rates can curb inflation, yet in the current environment, where inflation remains subdued but economic growth is threatened, tightening monetary policy may exact an economic toll without addressing the underlying trade issues,' Mitchell said. IOL Business
IOL News
4 days ago
- Business
- IOL News
Will South Africans be blessed with another interest rate cut this week?
Inflation data currently supports an interest rate cut, but it's not a clear cut case. Image: AI The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) is set to make its next interest rate decision on Thursday, July 31, and while the prospects of a rate cut appear positive, it's not a clear cut case according to economists. 'The market currently expects a cut in the key repo rate by 25 basis points - which would be the third reduction this year,' said Thys van Zyl, Chief Executive of Everest Wealth Advisory. 'A lower interest rate would bring welcome relief to consumers.' However he warned that while headline inflation remains relatively low, food price inflation is now at its highest level in more than a year, which poses risks for interest rate expectations as well as consumer spending. Consumer Price Inflation (CPI) rose to 3% in June, up from 2.8% in May. This was the first time in three months that inflation returned to within the Reserve Bank's 3% to 6% target range. However, CPI remains well below the 5.2% seen this time last year. Food prices remain higher than expected, particularly red meat thanks to foot-and-mouth disease, yet consumer goods inflation remains subdued. Johann Els, chief economist at Old Mutual, said the weak overall pricing pressure in the economy justifies a further 0.25 percentage point interest rate cut this week. ALSO READ: Understanding the impact of rising inflation on SA's interest rates Dr Elna Moolman, Standard Bank's group head of macroeconomic research, also believes the current inflation rate supports the case for an imminent interest rate cut, and although she expects inflation to rise over the coming months, it should remain 'reasonably benign'. However, Van Zyl warned that the central bank may be reluctant to cut rates too aggressively if global food and oil prices continue to trend upwards. 'Earlier this year, it was anticipated that the Reserve Bank could cut interest rates one or two more times in 2025. Following the January and May reductions totalling 50 basis points, it's increasingly likely that we'll see only one more cut this year – and perhaps not before year-end,' Van Zyl said. Uncertainty surrounding the proposed 30% tariffs on South African exports to the US is another factor weighing on the economy, he added, as these could impact export-driven industries such as manufacturing, mining and agriculture. 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 Next Stay Close ✕ ''This uncertainty, combined with rising inflation, puts policymakers in a difficult position – trying to support growth while also protecting the rand and price stability'. Potentially lower inflation targets later in the year or in 2026 could also jeopardise the interest rate situation for South Africans going forward. South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Experts argue that a lower inflation target would improve price stability, reduce borrowing costs and enhance investor confidence in the long term. However, many feel it would entail some short term 'pain' for the sake of long-term gain. Yet tightening monetary policy could be a dangerous move in the current economic climate, warns Frederick Mitchell, chief economist at Aluma Capital. 'Conventional wisdom suggests that raising interest rates can curb inflation, yet in the current environment, where inflation remains subdued but economic growth is threatened, tightening monetary policy may exact an economic toll without addressing the underlying trade issues,' Mitchell explained. IOL Business
The Citizen
16-07-2025
- Business
- The Citizen
Fuel station plan sparks Magoebaskloof safety, eco fears
TZANEEN – A proposed fuel station development along the R71 at the Houtbosdorp turnoff in Magoebaskloof has sparked concern among local residents and environmental groups, who fear it could pose risks to both safety and the environment. Despite these objections, developer Makgoba Asset Management (MAM) says the issues have been thoroughly addressed in the project's Environmental Impact Assessment (EIA), which is currently with the Limpopo Department of Economic Development, Environment and Tourism (Ledet) for consideration. A petition opposing the development has been launched on garnering over 1 500 signatures by Tuesday. It will be submitted to Ledet to support objections to the proposed project. MAM is a joint venture between the Makgoba community and agricultural giant ZZ2, operating under a long-term lease agreement with the Mamphoku Makgoba Community Trust (MMCT). The original plan was to renovate a dilapidated fuel station on the Dieplaagte site, near the Makgoba Afrika avocado project at the bottom of the pass. However, in June last year, ZZ2 director BJ van Zyl told the Herald that Sanral rejected that location due to safety concerns over the access road. 'Given the ongoing need for a fuel station in the area, we negotiated with Sanral for an alternative site,' Van Zyl said. The new location will be leased by MAM from property owner Rudi Viljoen of Warriors Academy. It is said the lease terms still have to be negotiated. Concerns raised by local stakeholders, listed as Interested and Affected Parties (IAPs), were highlighted in a post by the Mountain Environmental Watch Facebook group on July 6. The two main objections are environmental risks and traffic safety. Firstly, residents are worried about the nearby Helpmekaar River wetland and the potential for water pollution, which could impact downstream users and threaten endangered species such as the Cape Parrot, posing a risk to the area's eco-tourism appeal. Secondly, the proposed location sits on a blind rise along a bend in the R71, which is already considered a high-accident zone, especially during misty conditions. The development, which includes a 24-hour filling station, would increase traffic at an already dangerous junction. Some access routes would require vehicles to cross the centre line on this bend, further raising safety concerns, the post on Facebook states. However, MAM's project manager, Martin van Veenen, says these objections have been taken seriously and addressed in the EIA. The site's access road has been redesigned to improve safety, he said, adding that many community members have expressed support for the development, though some hesitate to do so publicly due to fear of backlash. According to Van Veenen, about 60 responses were received following the announcement of the development, with several being supportive. 'Our consultants followed the required process closely, and a detailed explanation of the project was presented to residents at a closed meeting in Haenertsburg three months ago,' he told the Herald. Attempts to contact the creator of the petition, listed as Jeff Jeffries, were unsuccessful. It was revealed that the name is a pseudonym used by a local resident living below the proposed development site, allegedly out of fear of intimidation. The petition, titled 'Protect Magoebaskloof – South Africa's Green Gem Under Threat,' remains active on M A K G O B A R E S P O N D Makgoba spokesperson, Thupane Makgoba, says every effort has been made to ensure the development of the fuel station on the R71 in Magoebaskloof complies with regulations and safeguards the environment. 'We understand the concerns, but we want to assure the public that every step is being taken to address them,' said Makgoba. He explained to the Herald that both Sanral and the Roads Agency Limpopo (Ral) had approved the proposed road safety and access solutions. Additionally, he confirmed that a full Environmental Impact Assessment (EIA) was conducted to ensure the project complies with environmental regulations. Responding to concerns about accidents near the proposed site, Makgoba noted that the area has a long-standing history of road incidents. 'Accidents have always happened there. People avoid using George's Valley Road because it hasn't been repaired. I don't believe the fuel station itself would be the cause of any accidents,' he said. He clarified that their role in the development is limited to licencing. 'We are the license holders, like owners, but we won't be running the business,' he told the Herald. Makgoba emphasised that the project goes beyond building infrastructure; it's about creating opportunities. 'This development will bring jobs and essential services to the people of Magoebaskloof. It's not just a fuel station; it's an investment in a sustainable future for the community. And we're not doing this alone, we're partnering with ZZ2.' He added that the final design of the development will follow eco-conscious principles, including landscaping that blends with the area's natural beauty. Makgoba called for continued dialogue with the community to maintain transparency and ensure concerns are addressed as the project progresses. 'We are committed to doing this right, with the community and for the community,' he concluded. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
08-07-2025
- Business
- IOL News
AfriForum blames Ramaphosa for US tariffs on South African exports
AfriForum CEO Kallie Kriel whose lobby group has put the blame on President Cyril Ramaphosa after US announced 30% tariff on imports from South Africa. Image: Supplied Lobby group AfriForum said President Cyril Ramaphosa and the ANC-led Government of National Unity (GNU) are directly responsible for the 30% tariff that US President Donald Trump announced on imports from South Africa. The organisation maintains that Ramaphosa and his government falsely dismissed US concerns as misinformation instead of acknowledging and actively working to resolve them. According to AfriForum, the country is now reaping the bitter consequences of the government's failure to act. The tariff, which takes effect from August 1, was suspended for 90 days to allow for negotiations. However, AfriForum head of public relations Ernst van Zyl, said Ramaphosa's government 'wasted the 90-day grace period and made no progress in resolving the diplomatic crisis with the Trump administration.' 'The civil rights organisation further maintains that those who helped promote the ANC's false narrative and dismissed the highlighting of critical issues in US and South Africa relations as the spread of 'misinformation' are also complicit in this crisis,' Van Zyl said. On Monday night, IOL News reported that South Africa will face a 30% tariff on all exports to the United States beginning August 1, following a formal letter from Trump to Ramaphosa. The letter, dated July 7 and sent on official White House stationery, accuses South Africa of maintaining long-standing trade barriers and contributing to what Trump described as 'unsustainable trade deficits against the United States.' The blanket tariffs will apply to all South African products entering the US and will be implemented outside of any current trade agreements. The announcement follows a wave of similar tariffs imposed on more than a dozen countries in recent weeks, with South Africa among the hardest hit. Van Zyl said AfriForum has repeatedly offered ways for the government to address the issues at the heart of the crisis. 'Instead of cooperating, the government made unfounded allegations against AfriForum and claimed the organization was guilty of spreading misinformation,' he said. 'A desperate investigation for treason has even been launched against AfriForum - all for the 'crime' of pointing out the real issues.' Van Zyl said that since the beginning of the diplomatic fallout, AfriForum has remained committed to finding solutions, but 'addressing these issues will require humility from the ANC-led government and an immediate end to its current approach of denialism.' 'All is not lost, and AfriForum remains committed to helping find a workable solution and will continue to offer assistance to those willing to put the country's interests above party interests,' he said. Van Zyl said the Trump administration gave South Africa and other countries 90 days to resolve the concerns raised. 'While countries like China, Vietnam and the United Kingdom engaged in talks and secured favorable trade deals, South Africa 'adopted an ostrich approach, simply ignoring the issues in the hope they would resolve themselves,' he said. Van Zyl said ignorance is no excuse. He said the Trump administration recently reiterated its conditions for restoring diplomatic relations with South Africa in a meeting with an Afrikaner delegation at the White House. The conditions include prioritising alleged farm attacks and murders as serious crimes, a clear, unconditional condemnation of the 'Kill the Boer' chant by Economic Freedom Fighters leader Julius Malema, no land expropriation without fair, market-related compensation and exemptions for US institutions from all race-based legislation, including Black Economic Empowerment policies. Van Zyl said the problems were 'not insurmountable' and that the solutions proposed by the Trump administration were 'fair, sensible and easily implementable by any government that does not pursue an extremist ideology.' Meanwhile, Democratic Alliance leader and Minister of Agriculture John Steenhuisen said he is deeply concerned about the economic impact of Trump's tariff decision, which could effectively signal the end of the African Growth and Opportunity Act (AGOA). The AGOA provides South Africa duty-free access to the US for more than 6,000 products, including goods in the automotive, agricultural and textile sectors. 'The Democratic Alliance stands in solidarity with every South African business, entrepreneur, farmer, manufacturer, miner and all others who export goods and produce to the United States, who are confronting this news with worry and uncertainty,' Steenhuisen said. 'South Africa has one of the highest unemployment rates in the world,' he said. 'Thousands of farmers, manufacturers and workers' jobs are now at risk. Billions of rands will be lost in export revenue, making this a crippling blow to the economy.' 'Now, more than ever, the ANC needs to accept the fact that South Africa is in need of urgent reforms that will bring about increased economic growth and cushion the job losses that will no doubt follow yesterday's announcement by the US President,' he said. IOL Politics
