We need a Spending Review to give hope to the ‘lost generation’, including millions of young people who do not have jobs in SA
22 February 2017
The Minister of Finance, Pravin Gordhan, had very little political space and even less fiscal space in which to manoeuvre when he tabled the main budget today in Parliament.
The fact is that, because of a failure to implement structural reforms to boost economic growth, economic growth has stagnated, with the projected economic growth rate being revised down from 1.7% to 1.3% for 2017.
That is why the minister was forced to announce tax increases and will be reaching into your pockets to raise an additional R28 billion in revenue in 2017/18, including: Personal Income Tax (R16.5 billion); Dividends Tax (R6.8 billion); General Fuel Levy (R3.2 billion); and “Sin Taxes” (R1.9 billion).
And that is why whether you are rich, and paying more direct tax, or whether you are poor, and paying more indirect tax, you will be paying more tax in 2017/18.