Mboweni: Better GDP growth means higher tax revenues

Finance Minister Tito Mboweni said that the government was concentrating its efforts on better GDP for a reason.

Finance Minister Tito Mboweni. Picture: @TreasurySA/Twitter

JOHANNESBURG - Finance Minister Tito Mboweni said that better economic growth and tax collection went hand-in-hand and there needed to be a concentration on GDP.

Speaking on 702, the minister explained why the government had set aside about R39 billion for assistance, saying that there was a plan to help the economy.

Finance Minister Tito Mboweni said that the government was concentrating its efforts on better GDP for a reason.

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“We really need to get the economy moving. We need to get better GDP growth, and better GDP growth also means higher tax revenues,” said the minister.

He said that corporates would also be encouraged to invest.

“We have announced that we want the CIT corporate income tax to come down by some one percentage point next year. It's a very important signaling mechanism to allow business to start planning for the future,” Mboweni said.

The minister said that South Africans who were battling had been assisted by the TERS payments and the R350 social grants, but Treasury was looking at new investment as the key to creating jobs and lifting GDP.

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