Taxes may rise for wealthy in mini budget, says expert
National Treasury may take a “tax heavy” approach to the budget, said Lesiba Mothata, chief economist at Investment Solutions.
Speaking to Fin24 by phone, Mothata shared expectations for tax revenues ahead of the medium-term budget policy statement – also referred to as the mini budget – to be presented by Finance Minister Pravin Gordhan on Wednesday, October 26.
“Coming from a ‘tax light’ budget in February, we are heading for tax heavy outcomes in the medium term,” he said.
A higher personal income tax bracket may be introduced. A wealth tax may be introduced as well, he said.
Higher corporate taxes are also possible following discussions at the G20 and authorities’ plans to clamp down on tax evasion and tax havens.
Overall, the aim is to shift tax benefits to those who earn less, explained Mothata. Essentially inflation will be covered by tax paid by middle to higher income earners, shifting tax benefits to those who earn less income.
Read the full story here: http://www.fin24.com/Budget/taxes-may-rise-for-wealthy-in-mini-budget-says-expert-20161023
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