MONEYWEB
app instead?
Major concerns about plans to cut wage bill and reduce deficit. 12:00
Image: Waldo Swiegers/Bloomberg
The success of this yearâs budget will depend on whether government can make true on its expenditure cuts announced on Wednesday.
South Africa is currently spending R2.1 billion a day on servicing its debt and our public service wage bill as percentage of gross domestic product (GDP) is the third highest in the world, slightly behind wealthy countries such as Denmark and Norway.
Nicky Weimar, chief economist at Nedbank, says SA still has a âhorrificâ budget deficit (14%) despite the better-than-expected tax collections from October onwards.
MONEYWEB
Budget signals the need for greater competitiveness
Reduction in corporate income tax rate shows government will be giving the private sector room to move. 11:01
President Cyril Ramaphosa at the second Africa Investment Forum. Making SA tax rates more competitive is another way of increasing the rate at which the country can rebound. Image: GCIS
The 2021 budget delivered by Finance Minister Tito Mboweni shows clearly that the penny has dropped in terms of the inability to increase tax revenue by increasing tax rates.
Instead, the minister delivered a strong message of encouragement and that the country is aiming to become more competitive.
Sars offices will be open on Saturdays throughout the month of October.
The history of international taxation shows that tax tends to shift substantially after a major world event. The two world wars have been the most important catalysts for the development of international taxation, a recent report by Graphene Economics on cross-border tax notes. In the report Keith Engel, CEO of the South African Institute of Tax Professionals (Sait), says that given the impact of Covid-19 on world economies, there is likely to be another shift in international taxation over the coming months and years. “If we look back at the 2008 global financial crisis, it was only in 2013 that.