Despite the recent positive sentiments about South Africa’s economy, the challenges facing it remain and the state’s overall fiscus set the tone for a trying budget in 2018.
Ahead of the implementation from April 1 of a number of budgetary pronouncements, consumers are reminded to remain cautious of the tariff hikes.
Read: SA mini-budget in a nutshell
Against the backdrop of an uncertain political landscape, a number of factors will continue to pressure consumers who are – and have ambitions to be – active in the vehicle ownership ecosystem.
The national budget foretold GDP growth of about 1.5% in 2018 and higher employment numbers – a view that was echoed by WesBank Group CEO Chris de Kock at the recent 2018 SAGMJ Car of the Year banquet.
“The positive sentiment brought about by the recent political changes is a good place to start and we are confident that this will lead to greater economic investment and improved growth prospects for the country,” said de Kock at the event.
Ghana Msibi, WesBank’s Executive Head for Sales and Marketing, said: “It would, still, be worthwhile for consumers to be cautious of the VAT increase. A VAT increase of 1% is immediate and while it might seem like a small number, it will add up and affect all purchases from food and clothing, to transport. The total cost of vehicle ownership will definitely be affected and consumers will need to be conscious of how they arrange all spend, not just for automotive purchases.”
For the full article on The Citizen’s website, click on: ‘Small changes, big effects’
