South Africans may see tax increases soon

Chief economist of the Efficient Group, Dawie Roodt, recently told Business Tech that South Africa’s growing budget deficit may result in further tax increases to help cover the shortfall.

Increased taxes could arise because:

  • Moody’s may downgrade South Africa’s sovereign credit rating to sub-investment grade because of the country’s poor economic figures
  • The fiscus is in deep trouble
  • Debts owed by state-owned enterprises amount to around half a trillion rand
  • SARS is struggling to collect sufficient taxes to cover the government’s growing fiscal deficit

Taxes could take the form of:

  • An increase in personal income tax
  • A VAT hike
  • A potential increase in fuel levies
  • Fiscal drag (when people, who have normal inflation-related increases in pay, jump into new higher tax brackets because the brackets have not also moved up by at least inflation)
  • Stealth, or hidden, taxes

Tags: , , , , , ,

Follow us on social media: 

               

View our magazine archives: 

                       


My Office News Ⓒ 2017 - Designed by A Collective


SUBSCRIBE TO OUR NEWSLETTER
Top