Budget speech: Can we afford higher taxes in 2021?

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?

Some argue Finance Minister Tito Mboweni has very little room to manoeuvre when he presents the 2021 budget.

If you’re dreading tax increases in this budget, you'll probably have to swallow a bitter pill.

READ: Budget Speech: Government needs to reduce expenditure, expert says

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.

READ: The basis of SA’s annual budgets needs an overhaul. Here's why, and how

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.

READ: Tax burden on middle class 'challenging': Enoch Godongwana

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.

Source
eNCA

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