We are bankrupt, but the news is not all bad

We are bankrupt, but the news is not all bad

Finance Minister Tito Mboweni arrives at parliament for his 2020 budget speech, 26 February 2020. Picture: Gallo Images

We’re still bankrupt as a nation. And that’s the issue Mboweni kicked down the road.

Even though South Africa’s taxpayers heaved a sigh of relief yesterday – Finance Minister Tito Mboweni did not announce any new taxes – they will continue to feel the effects of government’s increasingly desperate efforts to raise money. There will be increases in the fuel levy, as well as in “sin taxes” (the taxes on alcohol and tobacco)… something which happens with monotonous regularity in the annual budget. The decision not to raise the VAT rate, which could have brought in more than R25 billion to government coffers, was an acknowledgment by the government that the taxpaying public cannot be...




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