-SA budget in brief- Manuel says corporate tax competitive

CAPE TOWN – South African Finance Minister Trevor Manuel said yesterday the country’s company tax rates were globally competitive after he left the main corporate rate unchanged at 29 per cent in his budget speech on Wednesday.

Many analysts had hoped for further tax relief for companies as the government aims for six per cent economic growth. But at a post-budget breakfast briefing, Manuel pointed out that the corporate rate had been reduced in stages from 48 per cent over a decade ago to 29 per cent last year.Manuel said this was effectively a tax on dividends and the overall tax burden on South African companies was still competitive.Rand, bonds steady after budget JOHANNESBURG – South African government bonds steadied yesterday after sharp gains in the previous session while the rand also remained little moved and was seen range-bound ahead of US data later in the day.The yield on the most-traded R153 bond due 2010 was 1,5 basis points lower at 7,075 per cent after firming to a record peak on Wednesday as the government announced a cut in pension tax in its 2006/7 budget and reduced deficit forecasts for the next two years.The rand was trading around 6,0915/US$, slightly softer on its previous New York close.Finance Minister Trevor Manuel’s budget speech offered little to excite the rand but some traders said predictions for the same buoyant economic growth of the past few years might have cemented the optimism that has helped lift the rand since late last year.-Nampa-ReutersBut at a post-budget breakfast briefing, Manuel pointed out that the corporate rate had been reduced in stages from 48 per cent over a decade ago to 29 per cent last year.Manuel said this was effectively a tax on dividends and the overall tax burden on South African companies was still competitive.Rand, bonds steady after budget JOHANNESBURG – South African government bonds steadied yesterday after sharp gains in the previous session while the rand also remained little moved and was seen range-bound ahead of US data later in the day.The yield on the most-traded R153 bond due 2010 was 1,5 basis points lower at 7,075 per cent after firming to a record peak on Wednesday as the government announced a cut in pension tax in its 2006/7 budget and reduced deficit forecasts for the next two years.The rand was trading around 6,0915/US$, slightly softer on its previous New York close.Finance Minister Trevor Manuel’s budget speech offered little to excite the rand but some traders said predictions for the same buoyant economic growth of the past few years might have cemented the optimism that has helped lift the rand since late last year.-Nampa-Reuters