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Home Affairs and Treasury Disagree On Whether Or Not An Agreement Has Been Reached On Border Bill

Home affairs says the two department have reached consensus, but Treasury doesn't seem to agree.

06/03/2017 08:49 SAST | Updated 06/03/2017 08:57 SAST
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PRETORIA, SOUTH AFRICA - NOVEMBER 01: (SOUTH AFRICA, UAE, BRAZIL AND TURKEY OUT): New Public Enterprises Minister Malusi Gigaba as New South African ministers and deputy ministers are sworn in at the Presidential guesthouse in Pretoria, South Africa on 1 November 2010, after the announcement of the Cabinet reshuffle on 31 October 2010. (Photo by Foto24/Gallo Images/Getty Images)

Despite remarks by Deputy President Cyril Ramaphosa that the matter was still in negotiations, home affairs minister says issues between his department and Treasury around the Border Management Authority Bill have been resolved.

According to Business Day, at issue is the inclusion of the South African Revenue Service (Sars) in customs and excise collection at the country's ports of entry.

Treasury reportedly raised concerns that if Sars is not incorporated into the new border management agency, its role in collecting taxes will be fragmented at a time when concerns have been raised about it meeting its collection targets.

According to the paper, customs and excise generates about 20-30% of the total tax revenue target for next year.

Ramaphosa's spokesman, Ronnie Mamoepa, reportedly said talks between the departments are ongoing.

But Gigaba said on Sunday that the issues had been resolved, and that a memorandum of agreement between Treasury and Sars would be signed.

In a further development, Business Day reported that deputy finance minister Mcebisi Jonas also raised concerns about the bill in a letter to the portfolio committee on home affairs.

He reportedly said the bill did not reflect some of the issues agreed on by home affairs and Sars during talks.