Economists say Finance Minister Enoch Godongwana will need to balance reduced revenue amid rising expenditure demands when he tables the budget speech today.
South Africans may have to prepare for higher taxes as government seeks to generate an additional R15 billion in tax revenue, outlined in the Medium-Term Budget speech.
Tax expert Kyle Mandy says the decline in corporate profitability, particularly in the mining sector, is the primary factor contributing to the decrease in revenue collection.
Mandy says, “Treasury has really got a choice between two instruments to raise, income tax on the one hand, it’s gonna be a tricky decision for them to make. Our pit burden is already on the record as relatively high by global terms. It’s gonna be a tricky tax to increase.”
VIDEO: Economist Prof Waldo Krugell on the Budget Speech expectations:
