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Article compiled  by: White Nation  correspondent Cape Town– February 22 2017











FINANCE  minister Pravin Gordhan on Wednesday announced that an additional 30 cents per liter is to be added to the general fuel levy for the second year in a row. The minister said that an additional nine cents a liter is to be added to the Road Accident Fund (RAF) levy, which is cause for great concern, according to the Automobile Association (AA).

The new charges will come into effect on 1 April. The AA said the additional 30 cents per liter means that motorists will now be paying R3.15 towards the fuel levy for every liter of fuel they put in their vehicles, and additional R1.63 per litre for the RAF levy. “Effectively this means that for every litre of petrol, motorists are paying R4.78, or 35 percent, on indirect taxes. This is a huge amount, and calculated on a 50 litre tank of fuel amounts to R239“South Africans already buckling because of the weak economy will now have dig even deeper in their pockets. This at a time when many are questioning government spending,” the AA said.

Using the current price of a liter of 93 unleaded fuel of R13.38 inland, and R13.00 at the coast, the increases will push the price to R13.77 per liter, and R13.39 per liter, the association said. This, of course, is dependent on the monthly changes to the fuel price. “However, using the current figures, filling a 50 litre tank of petrol will cost R688.50 (inland), and R669.50 at the coast,” the AA said. The Association noted this increase comes amid widespread apathy towards other taxes on motorists, for instance, the funding model of the Gauteng Freeway Improvement Project (GFIP). We have long called for a portion of this fuel levy to be ring-fenced and used for projects such as Gauteng’s e-tolls. But the money collected through this levy does not go towards this, although it makes sense to do so. Instead motorists must pay extra taxes for the use of the roads,” the AA noted. “Motorists remain easy targets for revenue collection although many are suffering as a result of increases to the fuel price. This is particularly prejudicial to motorists especially in the context of a lack of proper, reliable public transport,” the association said. The dept profile of South Africa’s Government might just be the reasons why the economy is dwindling amidst other misfortune befalling the citizens. It is difficult to come to terms with the current debt profile. According to the Projections, revenue is R1.41-trillion, and the shortfall of R149-billion, which is 3.1% of GDP, would have to be borrowed. Government debt now stands at R2.2-trillion, which is 50.7% of GDP. Furthermore, 35% of the labor force is unemployed or has given up looking for work. In South Africa, 95% of wealth is in the hands of 10% of the ANC organized “elite“and their cronies. South Africa’s growth rate has remained sluggish compared to other economies, at 1% per year.

“Hundreds of thousands of commuters rely on their vehicles to get to and from work daily. And, these increases will not only impact on transport costs – including things such as bus and taxi fares – but are also putting inflationary pressure on other commodities that rely on road transport to be delivered across the country,” the AA said. The association said it believed the time was right for a review of the fuel and RAF levies. Patricia Williams, tax partner at Bowmans, pointed out that the Budget Review 2017 proposes that, in the 2018/19 period, the VAT zero-rating on fuel be removed. It goes on to state that, to mitigate the effect on transport costs, the fuel levy may either be frozen or decreased. “If indeed this is only a freezing of the fuel levy, the removal of the zero-rating of fuel would result in a 14% increase in the price of fuel to consumers,” the tax specialist said. (Link)

Gordhan mentioned two very strange ” taxes”- taxes such as “Carbon Tax ” and ” Sugar tax.” The South Africans already are struggling to survive from one day to the other as it is- now Gordhan and the puppet masters want to come and slap the population with yet another set of bourgeois “taxes” again. Carbon Tax for one is a helluva hoax schemed up by the crypto Jews to rake in millions of dollars in the USA. Their stupid motivation is that cars contribute so much carbon dioxide in America – that the poor population in China have to battle their way through life wearing oxygen masks . This is pure refined bullsh*t as the BIGGEST contributors to carbon dioxide is VULCANOES! And they have been spewing their carbon dioxide in the air for millions of years without the poor fauna and flora choking to death. Every-time these scrupulous con artists open their ugly traps under their noses- then it is tax, tax, tax.  Why not taking half of the so-called “politicians’ salaries- and stop giving freakin conman Zuma and his merry gang of commi thugs increases? Why not up sales tax if you must- thus forcing ALL the millions of ” previous disadvantaged” free bee riders to cough up their part of tax as well? So Gordhan- you can stick your “carbon tax” you-know-where. 

BUT what I love what Gordan said was:

  • Transformation must achieve a more balanced structure of ownership and control in our economy.

• Transformation should build on and strengthen democracy, and entrench open, transparent governance and the rule of law.

• Transformation must build self-reliance of South Africans, reject the dependence on debt and protect our fiscal sovereignty.

Transformation must result in an economy that belongs to all, black and white, where the legacy of race domination is no longer visible.

Then he also mentioned “Sugar Tax.” This levy is squarely aimed at high-sugar drinks, particularly fizzy drinks, which are popular among teenagers. Pure fruit juices and milk-based drinks will be excluded and the smallest producers will have an exemption from the scheme. It will be imposed on companies according to the volume of the sugar-sweetened drinks they produce or import. There will be two bands – one for total sugar content above 5g per 100 millilitres and a second, higher band for the most sugary drinks with more than 8g per 100 millilitres. Examples of drinks which would currently fall under the higher rate of the sugar tax include full-strength Coca-Cola and Pepsi, Lucozade Energy and Iron-Bru. The lower rate would catch drinks such as Dr Pepper, Fanta, Sprite, Schweppes Indian tonic water and alcohol-free shandy. This tax orginated in the USA to try to stem the childhood obesity in the population. Now if “Sir” Gordhan want to start that type of sh*t- then he must start taxing that obese criminals in the ANC parliament! However both these “taxes” are just another shrewd way from the white masters in Jew-land to rake in millions of rands again – the same they did in America. An additional R28 billion will be raised in taxes alone while Zuma and his side-kicks waste as much as they can AND still get salary INCREASES while the normal South African get bled dry. Government debt now stands at R2.2 trillion, or 50.7 per cent of GDP. How the hell are they EVER going to pay it back?  This is how the ANC wasted our hard-earned money! AND still they want MORE? You should be quite aware of the fact that if the Jews in America farts- the poor dimwit South Africans get to smell the stink- as-if we do not already have enough corruption and wasting with the clowns in power ! .

 The main tax proposals are:

• A new top personal income tax rate of 45 per cent for those with taxable incomes above R1.5 million.

• An increase in the dividend withholding tax rate from 15 per cent to 20 per cent.

• Limited bracket creep relief, increasing the tax free threshold from R75 000 to R75 750.

• An increase of 30c/litre in the general fuel levy and 9c/litre in the road accident fund levy.

• Increases in the excise duties for alcohol and tobacco, of between 6 per cent and 10 per cent.

Economist Dawie Roodt described the latest budget as horrible, highlighting that Gordhan stubbornly continues to increase the size of the state. “This is socialism running amok where a ravenous state will continue to parasitise the productive sector,” said Roodt. “Clearly government does not understand that they need wealth creators. Instead, it continues to increase the burden of a bloated state on a dwindling number of wealth creators.” The consequences will be lower growth, lower savings, lower investments, and fewer jobs, “- said Roodt. “As long as we have a government that assumes that we work for them, investors will look for greener pastures. And a tax revolt may be next.” BizNews founder Alec Hogg highlighted that highly-taxed rich individuals can easily leave the country. “Much like talented artists or sportsmen who abandon their homelands for places where they are better appreciated, at some point the burden becomes too heavy,” said Hogg.

He said that instead of stimulating entrepreneurship, the government’s higher taxes stifle the productive sector. Wayne McCurrie, senior portfolio manager at Ashburton Investments, said everyone knows we should rather raise VAT. Speaking on BusinessDay TV, McCurrie said increasing VAT is highly efficient and is spread over a massive cost base. However, the ANC government is so concerned about the political fallout of higher VAT rates, it would rather take the risk of hurting the economy. “If you increase dividend withholding tax and you increase the top tax rate for individuals to 45%, there is no rioting in the streets,” he said. “However, if you increase VAT by two or three percent, there is rioting in the streets.” He said if the tax rate increases further, many high-earning individuals may leave the country – taking their money and skills with them. (Link)

MEANWHILE  Deputy Finance Minister Mcebisi Jonas warned on Thursday of a real danger that South Africa could end up in a situation where there are two “parallel governments” where the big decisions are taken “elsewhere”. Jonas was in discussion with Daily Maverick journalist Ranjeni Munusamy at a post-budget breakfast function in Cape Town a day after Finance Minister Pravin Gordhan delivered his 2017 Budget Speech. Munusamy pressed Jonas to open up on the attacks launched on National Treasury over the past year, and asked if he and his colleagues had difficulty doing their jobs in the face of the division in the governing party. Although Jonas didn’t mention South Africa or the Gupta family in particular, he said a situation of parallel governments had the potential of eroding the legitimacy and credibility of the state. “And it becomes even more serious when there’s a situation, like in some countries, where the security forces don’t protect the citizenry any longer. When that slide happens … that’s something we need to look at,” Jonas said.

“Are we too far down the line? Or are we in the beginning? There’s a lot we can do to reverse this trend. But we need to have this conversation. We can’t just wish it away. And this is not just something for the criminal justice system (to solve). Civil society and research institutions also need to delve into this matter.” Jonas spoke at length about the role that an active citizenry and civil society play in holding government accountable. “We (at National Treasury) survive because we have an alert society,” he said. “If you underestimate the role of the media and civil society … and because you have this vibrancy certain people get their own TV stations and newspapers,” Jonas said in reference to the Gupta-owned ANN7 TV station and The New Age Newspaper. Munusamy then touched on the fact that Gordhan in 2016 called on South Africans to “defend” National Treasury. “What we’ve seen is a political attack on institutions. So you can have a strong department like Treasury, but political leadership is vitally important. There must also be the political will to make ideas succeed,” she said. Jonas conceded that institutions (such as Treasury) can quickly slide into decay. “It can happen in front of our eyes and then we need to ask: ‘Where were you as an individual?’” he said, again reiterating the need for civil society to make its voice heard. (Link)



Pravin Gordahn’s budget speech can be viewed HERE.




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