Mboweni could announce a wealth tax during Wednesday’s MTBPS

Speculation is rife that Finance Minister Tito Mboweni will announce a wealth tax when he tables his keenly awaited Medium Term Budget Policy Statement (MTBPS) on Wednesday.

If it happens, it will be the first time that a tax targeting the wealth of the country’s super-rich is introduced in South Africa.

For some insights into this story, SABC spoke to economist Owen Nkomo: 

Small businesses are also hoping to get clarity about initiatives to support them.

Earlier this month, President Cyril Ramaphosa announced the Economic Reconstruction and Recovery Plan which they say lacks necessary detail in terms of initiatives to support SMEs.

The poor financial position of government will likely be at the centre of Wednesday’s MTBPS.

Government debt is on the rise as the country tries to stimulate the economy and to cushion citizens against the effects of COVID-19 and the lockdown.

The local economy is expected to contract by at least 9% this year.

Government revenue is expected to plunge as a result of the struggling businesses and shutdowns as well as job losses.