Treasury Provides Feedback on Debt Relief Bill

National Treasury

National treasury has declared its support for revised proposals in the Draft National Credit Amendment Bill relating to an ongoing no income-no assets sequestration process.

Treasury added that the proposals replace the need for ad hoc ministerial powers (section 88F) and compulsory insurance.

In a briefing to the sub-committee on the draft bill, treasury added that they support proposals that create certainty that those who can pay, should pay and that keep those in good standing in the credit market.

With regard to proposals to levy credit providers, treasury pointed out that challenges with this approach include governance, cost and management of the fund and detail on investment and expenditure rules.

Meanwhile, the national assembly has passed the Division of Revenue Bill and sent it to the select committee on appropriations for concurrence.

The bill provides for equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2018/19 financial year, the determination of each province’s equitable share and allocations to provinces, local government and municipalities from national government’s equitable share and the responsibilities of all three spheres pursuant to such division and allocations.

Sabinet Cape Town Office

Related legislation: