Financial analyst takes on Sizwe Dhlomo ‘fair’ tax increases tweet

Sizwe Dhlomo. Picture: Supplied

Mboweni said in his speech on Wednesday the government has projected it needs R5 billion in tax increases for the 2021-22 financial year due to decreasing revenue and rising debts.

Finance Minister Tito Mboweni’s medium-term budget speech was met with some dissatisfaction from South Africans after the government announced plans to increase taxes.

Mboweni said in his speech on Wednesday the government has projected it needs R5 billion in tax increases for the 2021-22 financial year due to decreasing revenue and rising debts. He also announced another SAA bailout of R10 billion and that public sector employee salary would not increase for the next three years.

But a tweet from Kaya FM radio host Sizwe Dhlomo was a hot button issue. Dhlomo said it was the only “fair thing to do” to increase taxes.

His argument was, where will all the money be coming from other than taxes if the government needs to repay the cost of borrowing?

One follower rejected his argument, saying citizens were already paying high taxes but irregular expenditure and misappropriation of funds had directly affected South Africans.

Sizwe was criticised on Twitter with many thinking his argument was flawed and that raising taxes would not resolve the country’s economic challenges.



Replying to Sizwe’s tweet, popular financial analyst Koshiek Karan said: “There’s absolutely nothing fair about raising taxes and further suffocating citizens to fund inefficient service delivery, questionable statues, a bloated cabinet, dysfunctional SOEs and conceal the impact of corruption. To say a tax increase is ‘fair’ is downright absurd. No amount of timelines or Excel spreadsheets fixes inherently broken governance.

“Pumping more money into an abyss of fiscal mismanagement makes everyone complicit. This is the issue – there’s zero accountability.”

(Compiled by Sandisiwe Mbhele)

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