Barbara Curson
3 minute read
28 Jan 2021
7:05 am

Rising debt and taxes

Barbara Curson

A look at the backdrop against which the idea is being contemplated and likely unintended consequences.

Taxes. File photo.

With the rising costs of ongoing corruption, the consequential costs of the pandemic, out-of-control zombie state-owned entities, the loss of excise taxes to the fiscus resulting from the cigarette and alcohol sales bans, and the disruption to travel and tourism, South Africa is likely to overshoot the revised deficit of R761.1 billion for 2020/2021. While the Covid-19 virus spreads and mutates, the loss of lives and the impact on the economy will be felt for years to come. State-owned enterprises (SOEs) present a spiralling fiscal risk. Contingent liabilities are expected to reach R1 trillion by 2022/23 (according to the October...