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
You may be interested
43 year-old female falls from third storey apartment balconyAdministrator - Mar 19, 2018
A 43 year-old female has fallen from her third storey apartment balcony in Sheffield this afternoon. The patient sustained critical…
Watch: Footage from this todays violent protestAdministrator - Mar 13, 2018
A protest on the R102 near Groutville turned violent and had resulted in the closure on the road. It is…