Budget Speech: Analysts have mixed forecasts on what taxpayers can expect from Godongwana

JOHANNESBURG - Analysts in the finance sector have mixed forecasts for taxpayers as government looks to claw back shortfalls in revenue collection.

Minister of Finance Enoch Godongwana will have to make some tough calls when he tables the highly anticipated budget before Parliament on Wednesday.

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It comes at a time when government continues to spend more than it has in the public purse, as lower-than-expected revenue collection offsets the balance sheet.

This means the South African Revenue Service (SARS) and Treasury will need to balance increasing tax revenue collection without crippling the economy or taxpayers.

Tax expert, Billy Joubert, said he expected some reprieve for strained taxpayers.

"You can only squeeze taxpayers so hard, and in the end, putting up tax rates has precisely the opposite effect to the primary thing we need, which is to grow the economy."

However, tax and fiduciary expert, Pierre Botha, warned to leave some room for disappointment.

"With the pressure of the added revenue collections, I think it’s going to be a bit tougher for taxpayers and not easier. I think we may also see a bit of an increase in the fuel levy, which has held the same for the past couple of years. Ultimately, I don’t think there’s going to be much breathing room on that front."