- Malusi Gigaba, South African finance minister, gave his first Budget Speech yesterday that left the country in two minds
- With VAT, Sin Tax and Fuel Levy's increasing, it even left our celebrities shook
- There is a mixed emotion on the, what is meant to be a positive, increase in grants
South Africa’s famous faces even turned to shock with regards to the budget speech given by South African finance minister, Malusi Gigaba, yesterday. Despite him busting Kendrik Lamar lyrics and admitting his Candy Crush addiction, the VAT, Sin Tax and Fuel Levy increases left the country shook.
Our new financial minister tried to relieve some stress of the deficit which is currently sitting over R50 Billion, but shuffling some things around to try covering this missing money. There has been not account for this ‘missing’ money as yet.
These are the points in the speech that will affect the average Joe; a one percentage point rise in VAT, intangible personal tax relief, higher sin taxes and a large fuel levy. In other words, you will now have to walk to the bottle store to cover the increase in Sin tax and fuel. If you want to indulge in the ‘sinful’ substances.
The minister and his team have outlined a game plan to face SA's stagnant economic growth head on, in hopes increase our GDP over the next three years. The time lines are somewhat long, but it will be worth it if the results are as expected.
Social spending such as grants, healthcare and community development projects was also increased. This is good for the people, but there are still doubts as to whether it will cover the increase in VAT.
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