Budget predictions: Motorists, drinkers & smokers beware
The fuel levy & so-called sin taxes are expected to increase when the finance minister tables SA's budget in Parliament.
CAPE TOWN - Motorists, drinkers and smokers can prepare to dig deeper into their pockets if budget predictions are anything to go by.
The fuel levy and so-called sin taxes are expected to increase when Finance Minister Pravin Gordhan tables his 2017/18 budget in Parliament on Wednesday.
The Democratic Alliance (DA) says it also expects Gordhan to expand on a contentious sugar tax, which is still being debated in Parliament.
The DA is predicting that Gordhan will raise personal income taxes by at least 1%.
The party says the minister may even create a new tax bracket asking as much as 43% for high income earners.
The DA's David Maynier says dividends tax, capital gains and transfer duties are also expected to increase.
“What this means is that whether you are rich and taxed directly or poor and taxed indirectly, the minister is going to reach into your pocket and help himself to at least R28 billion to plug the fiscal hole 2017/18.”
In addition to personal taxes, commuters can also expected to pay more for transport through an increase in the fuel levy.
The Federation of Unions of South Africa (Fedusa) has called on the finance minister to introduce measures that will accelerate the implementation of the nine-point plan.
Fedusa says it believes the plan, which was introduced by President Jacob Zuma during his State of the Nation Address (Sona) in 2015, remains the finest blueprint for stimulating inclusive growth and creating jobs.
Fedusa’s Dennis George says South Africa’s economic growth rate is currently very low.
“The nine-point plan has been agreed upon by social partners and can build the economy. It can ensure higher growth and spur on job creation in the economy.”
(Edited by Shimoney Regter)