- South Africans should brace themselves for more tax hikes as the government looks to boost tax revenue
- During his Budget Statement on Wednesday, Finance Minister Tito Mboweni told Parliament that additional measures are under consideration
- With state-owned entities stumbling, and a massive state employee wage bill, taxpayers' hard-earned coin is being eyed
South African taxpayers were recently issued with a warning that more taxes are currently in the pipeline.
While hefty tax hikes came into play not so long ago Treasury is considering more to boost the government's bare coffers, reports Fin24.
Finance Minister Tito Mboweni told Parliament during his Budget Policy Statement that:
“Significant tax increases over the past several years leave only moderate scope to boost tax revenue at this time. Given the size of the required adjustment, however, additional tax measures are under consideration."
A struggling economy has seen tax collection coming in around R53 billion short of the budgeted amount for this year.
With Mboweni predicting that the government's debt will see 71% of South Africa's GDP funnelled into paying salaries and bailing out state-owned entities the situation is dire at best.
Keeping in mind that the national debt currently exceeds R3 trillion, have a look at ways the state has imposed taxes in the last few months:
- 1% VAT increase
- Tax on sugary beverages
- Carbon fuel levy on both petrol and diesel
- Income tax not reduced for inflation
Despite the above-mentioned taxes bolstering revenue brought in by income tax, the figures haven't met the state's expectations.
Briefly.co.za reported that Mboweni had touched on one of the nation's most troubling entities: Eskom.
The minister was adamant that further bailouts for the cash-strapped power utility are on ice, saying that Eskom should be treated like the business that it is.
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