Finance minister Malusi Gigaba will deliver the national budget speech in Cape Town on Wednesday afternoon.
Gigaba delivers his speech amid a period of political transformation in South Africa, following former President Jacob Zuma’s resignation as president of the country just a week ago.
The speech is expected to kick-off at 14H00 in parliament just a day after newly appointed president Cyril Ramaphosa responded to opposition parties following the debate on his State of the Nation (SONA2018) Address.
The highly anticipated speech is expected to focus on key issues that president Cyril Ramphosa focused on in his State of the Nation Address.
Personal Income Tax and VAT
Tax payers will keep a close eye on Personal income tax and VAT for South Africans as it affects most South Africans participating in the economy.
VAT is also expected to increase, with consumers also keeping a critical eye out for increases in basic products, including food.
Another critical focal point will be fuel levy increases, which are expected to cause a lot of unrest within the broader public transport industry, especially taxis.
Free Higher Education
Issues expected to take center stage include government’s plans on how it plans to fund ‘free’ higher education to students coming from households with a combined annual household income of R350 000.
SMEs
President Ramaphosa highlighted the importance of Small to Medium Enterprises and their importance towards contributing to the South African economy.
South Africans expect to hear how Minister Gigaba will juggle the numbers to ensure that SMEs receive enough financial support to grow.
Sin Tax
Sin tax, which includes tax on alcoholic products and cigarettes, remains vested interests to consumers who enjoy indulging in products that may be deemed unfavorable to both the government and the health of the nation.
Gigaba will deliver the latest tax that will be placed on products including whiskey and beer.
He is also expected to focus on reducing government spending , strategies towards averting another ratings downgrade and funding projects towards reducing unemployment in the country.
