PREMIUM!

We’ll be paying for years to come ‘to stabilise debt’

Government 7 months ago

Taxpayers will be squeezed over the next five years as South Africa tries to fill the black hole in the fiscus caused by the coronavirus pandemic, says Finance Minister Tito Mboweni, although government spending will also be slashed.


25 Jun 2020
PREMIUM!
We’ll be paying for years to come ‘to stabilise debt’

Picture: Moneyweb

Although Finance Minister Tito Mboweni promised yesterday to slash government spending to help repair some of the financial havoc caused by Covid-19, those taxpayers who still have jobs will face the prospect of increasing taxes over the next five years, according to Treasury. In its Supplementary Budget Review document, which underpins the finance minister’s speech on Wednesday, Treasury said: “Given the extent of fiscal consolidation now required, however, both expenditure reductions and tax increases are necessary to stabilise debt.” It added: “The active scenario assumes tax increases of R5 billion in 2021-22, R10 billion in 2022-23, R10 billion in 2023-...

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