Enoch Godongwana is unlikely to make major pronouncements on taxes: Tax experts

Tax experts say Finance Minister Enoch Godongwana is unlikely to make major pronouncements on taxes 2022 budget speech on Wednesday.
Godongwana will be delivering his budget at a time when the country’s economy is struggling with record high levels of unemployment.
The Finance Minister will also have to reveal how South Africa’s Economic Reconstruction and Recovery Plan has unfolded since it’s inception last year.
Tax experts say they expect very little to no changes in personal income taxes.
Tax expert at the South African Institute of Chartered Accountants (SAICA), Somaya Khaki says, “From a tax perspective we expect a conservative approach as national Treasury has realised some time ago that an increase in tax rates does not necessarily result in an increase in collections and it is not a sustainable long term solution. It is therefore unlikely there will be tax hikes in relation to personal income tax or VAT. But we will probably see inflationary increases in sin taxes and fuel levies.”
ACDP on Budget Speech 2022
The African Christian Democratic Party (ACDP) says it hopes Godongwana will present a pro-growth, debt stabilisation budget on Wednesday that also deals with social pressures.
The party says it is crucial to stimulate economic growth and job creation after the devastating COVID-19 lockdowns.
Chief Whip Steve Swart says they hope that there will be no tax hikes as the population is already overburdened by fuel and electricity price increases.
“We are also opposed to further bailouts for state-owned companies. Those that are not strategically significant must be released, Challenges at Eskom must be speedily resolved. Lastly, the ACDP has repeatedly called for additional funding for the Hawks, SIU and NPA. Criminals must be put behind bars and millions of rands stolen through state capture must be recovered,” says Swart.
Budget 2022 I Economist Isaac Matshego on the budget expectations: