Business Maverick: Vaccine tax hike underscores Treasury’s limited options – sin taxes should be on the table

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National Treasury Director-General Dondo Mogajane has said tax hikes may be used to fund the Covid vaccine rollout. Other options are on the table but the tax talk underscores the limited avenues that can be taken. Against the backdrop of prohibition, a hike in sin taxes should also be considered.

The other options floated by Mogajane in media interviews include increased borrowing. “One way or the other we will have to bite the bullet,” he told 702 Talk Radio on Tuesday.

“It is difficult to see where else the funding could come from. Also, there are already lots of different calls on existing government resources,” Razia Khan, chief Africa economist at Standard Chartered Bank, toldBusiness Maverick The Treasury is clearly highlighting its dearth of options ahead of the February budget, which will be unveiled by Finance Minister Tito Mboweni, who would probably rather be fishing or growing pot on his farm. His job is unenviable, to say the least.

The small percentage of South Africans who pay taxes already have one of the highest burdens in the world in this regard. According to Trading Economics data, South Africa’s top tax bracket of 45% is among the 20 highest in the world, on a par with France and Germany, where it is probably safe to say thatHigher taxes could curb consumption and investment at a time when the economy needs all the help it can get to generate jobs.

 

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It amazes me that the first step to raise the funds is not to stop corruption.

The most efficient way to get vaccines out is to license the pharma & pharmacy & docs to distribute on the basis that we buy 1 donate 2 .. That way if 5 million can afford private then 10 million poor will get .Now 15 million done at no expense to state.. & fast

Booze ban they don’t earn fucking sin tax wtf

But when the vaccines are paid for the taxation won’t be reversed

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