Tag ArchivesMTBPS

IMF, Treasury, economy, GDP, unemployment, International Monetary Fund

Moody’s on South Africa: fiscal slippage likely this year, but medium-term targets within reach

“We expect a slower pace of fiscal consolidation than the Government of South Africa (Baa3 stable) is forecasting based on a number of headwinds,” Moody’s said in a statement this afternoon. (more…)

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Prof Raymond Parsons

Additional zero-rating recommendations under VAT pose wider challenge to existing fiscal framework

The Independent Panel’s recent recommendations around additional zero-rating under VAT pose a wider challenge to existing fiscal framework. This is according to Professor Raymond Parsons, NWU Business School economist. “The recommendations of the independent Panel to enlarge the list of zero-rated items beyond the current 19 food categories and to now also include non-food items […]

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Prof Raymond Parsons

BUDGET 2018: COMMENT – Decision to raise VAT ‘inevitable’

The decision to raise VAT in Budget 2018 was ‘inevitable’, but risks of continuing to raise various taxes in the face of weak growth is why SA needs much higher economic growth rates. This is according to Professor Raymond Parsons, economist at the NWU School of Business and Governance “Despite its laudable goals and commitment […]

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Wesley Grimm, Webber Wentzel

Tax hikes are not the solution

By Joon Chong, Partner and Wesley Grimm, Candidate Attorney at Webber Wentzel. South Africa suffers from a trifecta of social challenges, namely: inequality, poverty and high levels of unemployment. This, when coupled with the state of economic stagflation, rampant government expenditure and bureaucratic paralysis is creating unprecedented fiscal pressure. (more…)

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Minister Malusi Gigaba

Minister of Finance convenes Budget Council Lekgotla

The Minister of Finance, Malusi Gigaba, convened a Budget Council Lekgotla today, he said in a statement. “The main objective of the meeting is for government counterparts to learn from one another on best practices and processes that need to be in place to ensure a coordinated approach towards the inclusive economic growth agenda. “The […]

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Mike Teuchert, National Head of Taxation at Mazars

Tax increases may not be enough

The possible tax increases hinted at during last week’s Medium Term Budget Policy Statement (MTBPS) are likely to do very little to decrease Treasury’s R50.8 billion revenue shortfall – and may in fact ensure that even less revenue is collected next year. (more…)

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saeconomyjune14sq

MTBPS likely to lead to rating downgrades before year end

by Johann Els – Senior Economist at Old Mutual Investment Group. Minister Gigaba’s first Medium-Term Budget Policy Statement missed the mark completely, raising the deficit and debt targets substantially without a plan to bring them back over the medium-term expenditure framework. (more…)

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Nazmeera Moola, co-Head of Fixed Income, Investec Asset Management

MTBPS paints bleak picture

The Medium Term Budget Policy Statement (MTBPS), presented in Parliament by Finance Minister Malusi Gigaba, paints a bleak picture: the expenditure ceiling has been breached, there is no primary surplus and debt and guarantees combined are above 60% of GDP.  Not only is the market likely to hate it, but Standard & Poor’s may well downgrade […]

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