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Finance Minister Enoch Godongwana is scheduled to deliver his first national Budget Speech on Wednesday, and taxpayers may be in for some good news.
The Good Hope Chamber in the parliamentary precinct is being prepared for the ceremony, which is scheduled to begin at 2 p.m.
Economists anticipate a low-key budget that adheres to Godongwana’s November Medium-Term Budget Policy Statement.
While no pyrotechnics are anticipated, increased taxes on fuel, tobacco, and alcoholic beverages could nevertheless burn a hole in people’s pocketbook.
While the commodities boom will not persist indefinitely, it has aided in the expansion of state coffers, which is excellent news for South African taxpayers.
Thalia Pertousis of Allan Gray: “Government revenue is likely to exceed estimates. We do not know by how much, but it may be as much as R80 billion.”
This means that there will be less pressure to raise taxes.
Annabel Bishop, chief economist at Investec, says: “There is little need for tax increases at the moment because we have experienced such significant revenue overruns, which are clearly the result of the commodity boom that began last year but is continuing this year, which means our 21/22 tax year is likely to see revenue exceed budget.”
Charles de Wet, ENS Africa’s tax specialist, anticipates that people would pay slightly less tax, with lower-income earners benefiting more than higher-income earners.
“He’s going to reintroduce money into people’s pockets,” De Wet explained