The beer association of South Africa, meanwhile, has reacted that it is"shocked" about an increase in excise taxes on beer.
While revenue collection was lower than projected in February last year before the pandemic struck, it was higher than what was projected in the medium-term budget last year. He notes that SARS will, among other things, increase its use of data to boost its predictive capabilities, to help boost state coffers. Will it cover enough vaccines to reach heard immunity? Some will be placed in a contingency reserve to be easily accessible.
"At some point.....a number must be there. We have done this for the past 20 years. There have always been estimates [with] certain assumptions in them," he says. He says the number could change. The budget is a"statement of political intent," adding that negotiations can deliver a higher or lower number. Asked about SAA again, Mboweni says these questions should be directed towards the department of public enterprises.
"Prediction for economic growth is still dismal at 3.3% in 2021, 2.2% in 2022 and only 1.6% in 2023, way too low to even make a dent in unemployment and to uplift the people in poverty and bridge the gap between rich and poor," he said in a statement. With the budget speech done, attention will now turn to Mboweni's post-budget briefing, which is set to kick off at 4pm.
Hill-Lewis said that, by raising the petrol tax, the cost of living for every South African will increase. He says the budget he has tabled today will allow govt debt to stabilise at 88.9 per cent of GDP in 2025/26. This is lower than the figure of 95.3% of GDP by 2025/26 presented at the medium-term budget last year. The minister says that the annuitisation for provident funds will take effect from 1 March 2021.The minister says the Department of Justice and Constitutional Development has been allocated an additional R1.
* The corporate income tax rate will be lowered to 27 per cent for companies with years of assessment commencing on or after 1 April 2022."This will provide R2.2 billion in tax relief. Most of that relief will reduce the tax burden on the lower and middle-income households. This means that if you are earning above the new tax-free threshold of R87 300, you will have at least an extra R756 in your pocket after 1 March 2021," he says. The minister says SARS is expected to collect R1.
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