Are South Africans once again set to rescue the state coffers by paying higher taxes? Some argue Finance Minister Tito Mboweni has very little room to maneuver when he presents the 2021 budget. Heidi Giokos has more. #DStv403
JOHANNESBURG - Are South Africans once again set to rescue the state coffers by paying higher taxes?
If you’re dreading tax increases in this budget, you'll probably have to swallow a bitter pill.
The money’s got to come from somewhere.
But experts agree your personal income probably won't be targeted and Value-Added Tax (VAT) is also unlikely to be a preferred option for Treasury.
The virus-hit economy and tax-fatigued consumers won’t be able to tolerate further hikes.
Tax hikes in some obvious areas are likely and experts expect one of these to be the so-called sin taxes, while a 30 cent hike in fuel levies is also being predicted.
But there’s another tax that’s brought in close to 5-and-a-half billion rand over the past two years. The sugar tax.
While the industry says it will hurt the sugar sector badly, some say this is the perfect time for it to be raised.
Analysts have all but dismissed the possibility of a vaccine tax, and say a further wealth-tax will be ineffective as it covers a narrow base.
* eNCA's Heidi Giokos reports.