Budget 2020: A tax expert said Finance Minister Tito Mboweni would be walking a tightrope if he wanted to use more tax to raise government revenue.
Cape Town - Asked if there were any more cows that Mboweni could milk, economist Dawie Roodt said: “There’s not really anything new that can be taxed. We’ve pretty much taxed everything that can be taxed.
“Maybe we’ll see a wealth tax, but this won’t be a short-term solution. In the end Mboweni will probably just increase VAT.” Head of fixed income at Anchor Capital SA Nolan Wapenaar said: “South Africa’s problem is that government is too big. Mboweni can get creative with obvious avenues such as raising VAT by 1%, but that will have unwanted social and political impact.
“He could try to raise personal income tax, but the tax base for that is too low and he cannot afford to alienate that constituency too much, so the minister will probably settle for bracket creep,” said Wapenaar.
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