Owen Kock
Bloemfontein. – An economist expects no significant nasty surprises during finance minister Pravin Gordhan’s budget speech tomorrow.
Dawie Roodt says South Africans can expect some tax increases. He says he doesn’t expect Gordhan to adjust the tax income bracket sufficiently to address the effects of inflation, and that could be the only nasty surprise.
"There is a possibility that the minister will increase the marginal rate for individuals but I don’t think that will be a very clever thing to do. Simply because he’s not going to get much more tax in and the reason for that is we do not have that many rich people in South Africa.
"The only reason why he would increase the marginal rate is for political reasons. Taxes like the fuel levy, the road accident fund and all those different sin-taxes will be increased as always," Roodt said.
