Finance Minister, Malusi Gigaba delivered the 2018 National Budget Speech on 21 February, during which a one percentage point increase in the value-added tax (VAT) rate to 15% was announced.  In Sanlam Group Risk, all processes were reviewed to ensure the implementation of the VAT increase will take effect on 1 April 2018.

Government has also directed the Financial Services Board (FSB) to proceed with certain reforms, one of which is to continue strengthening enforcement measures to deal with criminal and unethical practices.  To this extent, the FSB will publish directives in 2018 to improve disclosures by both retirement funds and administrators and to outlaw unethical practices.

Sanlam will communicate further on this as and as soon as the extent of these directives have been made known.

You may also read the Sanlam Employee Benefits National Budget Speech Commentary here.