Kaya News Reporter
With the annual Budget Speech set for 23 February, there’s increasing calls for government to consider cash-strapped consumers.
A major increase in taxes will be a devastating to numerous industries as well as the average South African.
Finance Minister, Mr Enoch Godongwana will deliver his inaugural National Budget Speech next week and has invited suggestions from the public.
The minister is expected to address government expenditure for the next fiscal year, outlining his budget, new sources of tax revenues and other budget related information.
Government’s budget allocation will aim to strike a balance between competing national spend priorities.
Now, numerous industries are calling on government to not hike taxes.
The liquor association for one has appealed to treasury to leave the alcohol excise tax untouched. This is due to the industries slow recovery due to the Covid-19 pandemic and the multiple alcohol bans.
According to Vinpro which represents close to 2,600 SA wine producers, the alcohol industry needs stability, policy certainty and support.
Managing Director Rico Basson said “the wine sector annually contributes R55 billion to GDP and provides employment to more than 265 000 people.”
While analysts and economists have predicted that government will not implement a major tax increase, there are concerns that taxpayers will be hit with a hike in sin tax and fuel levies.
One of the predictions from analysts is that the finance minister will not make changes to the personal income tax and the maximum marginal tax rate.
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