News 06:00

BULLETIN 2 April 6 am

Good morning. I am……..

In this bulletin:

# The parliament’s Finance committee adopts the fiscal framework report
# ActionSA says the VAT increase and tax bracket creep have been scrapped
# And South Africa wants to talk with the US about auto exports

# Parliament’s standing committee on Finance has adopted the report on the fiscal framework but with recommendations, laying the groundwork for today’s National Assembly sitting. This comes as the ANC has supported a proposal from ActionSA to amend the budget by removing the 0.5-percentage point increase in value-added tax and give personal income taxpayers complete relief for inflation. The proposal includes a 30-day pause in the budget process during which the National Treasury would redo the fiscal framework.

Meanwhile, ActionSA says it has protected every South African from excessive taxation and worsening economic pressures. This is as the party has moved a recommendation in the fiscal framework report that ensured the proposed 0.5-percentage point increase in VAT for the 2025/2026 financial year has been effectively scrapped. ActionSA’s, Athol Trollip, says they have ensured that substitute revenue proposal and corresponding expenditure savings are considered, to offset the 28-billion-rand shortfall from scrapping the tax increases:

# Trade, Industry, and Competition minister, Parks Tau, says they will engage with US authorities over Washington’s decision to impose a 25-percent tariff on automobile and auto part imports. He warns the move could hurt South Africa’s economy, with vehicle exports making up 64-percent of African Growth and Opportunity Act trade. The government will also consult the local automotive industry on the impact. The tariffs take effect in April and May, with only Mexico and Canada exempt.

# Eskom and the Emfuleni Local Municipality in Gauteng have marked a major milestone as the municipality fully paid its electricity account for the first time in months. This follows the signing of the distribution agency agreement in October, making the utility the service provider. Eskom regional spokesperson Amanda Qithi says the partnership has led to increased payment levels, improved supply reliability, and better infrastructure maintenance:

# Denmark has called for a united EU response to US warnings to European companies against using diversity programmes, which US President Donald Trump has vowed to eradicate. A few dozen French companies doing or looking to do business in the United States and several Danish companies have received letters from US embassies that included a questionnaire asking them to certify that they “do not practice programmes to promote diversity, equity and inclusion”. These programmes are designed to provide opportunities for people of colour, women, and other historically excluded groups.

# Motorsport: Red Bull expects the new driver Yuki Tsunoda to just stay as close as possible to Dutch world champion Max Verstappen in his home Grand Prix in Japan this coming weekend. This follows after he replaced Liam Lawson of New Zealand after just two races. Red Bull team principal Christian Horner told Tsunoda to try and aid the team’s cause as they are lying third in the constructors’ championship. The 24-year-old says he will be happy if he finishes in the top ten at Suzuka.

# And the financial indicators: The dollar trades at 18-rand-45-cents and the euro at 19-rand-90-cents. One British pound costs 23-rand-87-cents and Bitcoin trades at 85-thousand-148-dollar-30-cents. Gold sells at three-thousand-112-dollars-74-cents a fine ounce and Brent crude oil is quoted at 74-dollars-52-cents a barrel.

Stay tuned for more news………….