Focus on national fiscus in Budget Speech
Finance Minister Nhlanhla Nene is expected to announce additional tax measures.
JOHANNESBURG - With Finance Minister Nhlanhla Nene due to delivery his annual Budget Speech, economists and tax specialists say the big question is where he will source additional funds to increase the national fiscus.
Nene is expected to announce additional tax measures in his speech but it's unclear if this will be passed on to personal tax or to companies.
Senior manager of international tax at Ernst and Young, Charles Maloka, says Nene will most likely try to bridge the gap between the state's income and foreseeable expenditure.
"The question is which button to push, do you push the Vat button? Do you look at income tax? Each instrument has its political implications."
Meanwhile, senior professor at the school of economics at Wits, Chris Malikane, says the country is waiting to see if the minister will sustain government's spending on social services.
"We need to look at the expenditure of social services like education, health care and social grants."
Meanwhile, the Congress of South African Trade Unions says the minister must be guided by the African National Congress' strategy of a radical transformation of the economy.
Spokesperson Patrick Craven says it is completely opposed to increasing Vat and want commitment from the minister to establish a national minimum wage.
"Keeping wages low isn't a solution, we want to see him commit to a national minimum wage because that's better for the economy in the long term."
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