National Treasury to Press on With Carbon Tax Proposal

National Treasury

National treasury intends producing a policy paper on a carbon tax proposal for submission to cabinet this year.

Presenting its strategic plan to the standing committee on finance in Parliament, treasury added that the proposal would be included in the 2012 budget.

Treasury would also look at various policy options to increase private savings.

Over the next three years, treasury also plans to publish a policy document outlining proposals to modernise the framework for inward and outward investment.

Further exploration of viable models to finance the national health insurance will also take place.

A policy framework for social security reform is to be developed.

A review of procurement legislation will be undertaken in consultation with relevant stakeholders.

Treasury also pointed out that a document spelling out a proposed youth subsidy was currently under review at Nedlac.

The proposed youth wage subsidy was announced by finance minister, Pravin Gordhan, during his budget speech in February.

It seeks to give companies an incentive to employ inexperienced young people between the ages of 18 to 29.

Treasury would also press on with plans to make the South African financial sector safer.

A policy paper entitled “A safer financial sector to serve South Africa better” was released for public comment on budget day this year.

Treasury recently set down 30 June 2011 as the deadline for submissions.

Guidelines to strengthen the monitoring and oversight function of members of Parliament are to be developed.

In terms of regional development, an agreement on a new revenue-sharing formula within the Southern Africa Customs Union will be drawn up over the next three years.

During the meeting, the finance minister also announced that new state procurement regulations would be published by the accountant-general within a day or two.

The new regulations will make the tender process instituted by national and provincial governments more transparent and better controlled. Supply chain management is to be tightened up.

According to Business Day, national and provincial governments will now have to submit advance tender programmes for all contracts over R500 000 to national and provincial treasuries.

Sabinet Cape Town Office

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