South Africa: Budget Delay Sparks Tax Debate; Ecuador Updates IVA Refunds; Germany Considers Property Tax Changes

South Africa's Finance Minister, Enoch Godongwana, expressed displeasure over comments made by Sars commissioner Edward Kieswetter regarding potential tax increases. This occurred following the postponement of the 2025 budget announcement, intended to allow for further deliberations. Kieswetter had suggested focusing on collecting outstanding taxes, estimated at R800 billion annually, rather than raising tax rates. Ecuador's government has allocated $60 million to the Internal Revenue Service (SRI) for pending Value Added Tax (IVA) refunds to senior citizens and individuals with disabilities. According to an official statement, these payments cover resolutions notified up to February 17, 2025, benefiting approximately 260,000 individuals. The government stated that it has disbursed over $400 million for IVA refunds to priority groups since the start of its administration. The SRI clarified that payments are being made to those whose applications had been resolved by February 17, 2025, with final disbursement dependent on financial institutions' processing times. In Germany, the Social Democrats (SPD) requested a delay in the budget debate for the 2025/2026 fiscal year to allow more time for deliberation, citing the "complex budget situation and the many open questions and still missing figures." While a formal council decision is pending, the debate is expected to be postponed. The council also discussed proposals to split property tax B (Grundsteuer B) and introduce property tax C (Grundsteuer C). Grundsteuer B applies to developed and undeveloped properties, while Grundsteuer C would target undeveloped land intended for construction. Klaus Ripp (CDU) opposed Grundsteuer C, arguing it could force families to sell their land to speculators. Peter Abels (Greens) accused CDU and SPD of changing their stance on splitting property tax rates. The council agreed to examine the legal feasibility of splitting Grundsteuer B and instructed the city administration to report on its progress. A proposal by the Greens to introduce a packaging tax to reduce property tax was rejected.