3.3.2020 01:36 pm
Edward Kieswetter was surprisingly upbeat about the lack of increased personal taxes announced in last week’s budget. Here’s why.
Despite being the country's tax boss, responsible for overseeing the collection of your hard-earned money on behalf of the government, Edward Kieswetter was surprisingly upbeat about the lack of increased personal taxes announced in last week's budget. Here's why.
Other cost-saving measures will include requiring all government officials to travel economy class on domestic flights.
Could new vaping tax hurt job creation in South Africa’s fledgling e-cigarette industry?
Social grants will see only a slight increase, while early childhood development and programmes to combat gender-based violence will receive hefty allocations. Free sanitary pads for female pupils also finally gets some attention.
Mboweni’s announcement of a massive R160 billion reduction in the public service wage bill is sure to raise some eyebrows, but the move is expected to yield a 1% reduction in consolidated compensation spending.
Contrary to what pundits predicted, income tax will go down and VAT will stay the same.
South Africa’s ailing state-owned entities will be getting a massive R129 billion cash injection and, predictably, the bulk thereof will go toward the limping state power utility.
The good news is that VAT hasn’t been increased, but there is a raft of (expected) tax hikes on all the fun stuff, including beer, wine, and vaping-related goods. There is also bad news for the petrol heads, with increases in fuel and RAF levies.
Finance Minister Tito Mboweni’s 2020 budget speech will be delivered against the backdrop of low economic growth, high unemployment and a looming downgrade by Moody’s.
A budget speech announcing lower taxes, and decreased government spending, will indicate that the government is truly committed to radical economic transformation.
There’s little logic behind creating such a fund in a sea of government debt.
Although Sanral received money from Treasury, very little went to service the R20bn debt and, instead, went to Electronic Toll Collection to pay for toll collections.
It is ‘more important than ever for government to drive investment into SOEs to deal with the current job crunch and stimulate a healthier economy’.
The finance minister, who does not have much leeway in the budget he presents today, should ‘be cold and clinical,’ and cut all aid to SOEs, experts say.
Some of the country’s brightest young university students are gathered in Cape Town ahead of tomorrow’s budget speech, and they almost all predict a plethora of added taxes and levies, they believe job cuts are also unavoidable.