Revenue Laws Amendment Bill: National Treasury briefing

The Select Committee met to receive a briefing from National Treasury on the Revenue Laws Amendment Bill, 2025. Treasury provided an overview of the bill, explaining that the amendments sought to clarify provisions related to the two-pot retirement system which came into effect on 1 September 2024. While the system had improved retirement savings and compliance, certain technical issues required correction. Key points included clarification on the seeding dates, proportional application of maintenance claims, technical definitions for “total members’ interest,” and provisions for contributions under the two-pot system. During discussion, Members raised concerns regarding the taxation of withdrawals, and sought clarity on maintenance-related deductions, and the broader impact of the two-pot system on workers and communities. Questions were also asked on the public education efforts by National Treasury and the South African Revenue Service (SARS), the treatment of older members within the system, and the potential use of pension funds as collateral for education loans. Members stressed the importance of ensuring that the public clearly understood the implications of the system, particularly in relation to taxation and withdrawal limits. In response, Treasury officials emphasised that contributions to retirement funds were already tax-deductible, and that taxation of withdrawals was necessary to preserve revenue. They highlighted the availability of the SARS online tax calculator as a tool for members to understand their tax liabilities. Treasury also confirmed that while withdrawals had reached significant levels, most were directed towards reducing personal debt, with approximately R60 billion withdrawn, and R16 billion collected as tax revenue to date. Clarifications were provided on maintenance deductions, seeding dates, and the consistency of application under the amended legislation. The Committee then considered its draft third-term programme, which outlined upcoming public hearings, responses to submissions, and clause-by-clause deliberations on the bill. Members supported and adopted the proposed programme.