What’s left in Tito Mboweni’s piggy bank ahead of the MTBPS?

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The Finance Minister is caught between a rock and a hard place. While arguably he should be reducing government spend and increasing income (usually through higher taxes), these are things the ailing economy can ill afford.MTBPS2020 busrep TitoMboweni

The 2020/21 MTBPS was delayed from the previous week. While no official reason for the delay has been given, there’s speculation that it was because the Finance Ministry needed more time to better align the budget to the President’s recovery plan, which was announced on October 15.

He said the government could essentially turn to two places for income: borrowing or the tax base. “We’ve already accumulated eye-watering levels of debt so it doesn’t seem like a good idea to borrow more. This leaves the tax base as the most likely place government will try to earn more income from. But the tax base is so stretched that I’m not sure how feasible this is.

“Anecdotally, we’re seeing this play out at Mazars in South Africa,” said French. “Our private client business has been inundated with work related to emigration.” Althea Soobyah, tax consulting director suggests rather than taxing the legitimate but rapidly dwindling tax base for revenue, authorities should be looking to target those with ill-gotten gains.

 

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busrep If he reduce government spending there will be less money in the economy . If he does reduce the government spending he has to increase tax which is not healthy for the economy .

busrep Or plain MTBPS... Following tito_mboweni for more great recipes... SMH

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