Tax increases are coming

According to a recent article by Business Tech,  Finance Minister Tito Mboweni has said that the National Treasury has no plans to boost certain taxes – even as the coronavirus decimates the nation’s finances.

• Income tax – with a top tax rate of 45% – will not be hiked, as earners are already strained
• Corporate taxes will likely not be hiked, as they already sit at 28%
• VAT (currently 15%) will not be hiked as this move is unpopular within the ruling ANC, because it affects the country’s poorest people
• There is the possibility of an inheritance tax
• There is also the possibility of a so-called solidarity tax as a bid to raise additional finances, but this would be limited in duration
• Mboweni said that government expects to miss its tax revenue target by over R300-billion this year