BUDGET 2017
BUSINESS DAY TV: The budget gives the wealthy a smack on the hand
Deputy Finance Minister Mcebisi Jonas talks about why the ministry took this decision, and why there were no changes to VAT.
Mcebisi Jonas is Deputy Finance Minister. BUSINESS DAY TV: It was a "smack on the hand of the wealthy" budget with a raft of hefty change,s but no VAT increases were announced. Earlier, BDTV caught up with Deputy Finance Minister Mcebisi Jonas to find out why they decided to take that decision. MCEBISI JONAS: Until this issue of VAT is opened up and discussed, it’s still on the table but at the moment the pressure was, let’s try to maintain the "progressivity" of our tax system because that is, by its nature, regressive. BDTV: Of course, but okay, so let’s talk about that progressive taxation system, so 45% tax on the highest income earners in SA. If I may, these are the people who are generally most mobile, they have the highest skills, they have the most experience, and just going back to the point that they’re the most mobile ... so they can leave. Are you not in danger of causing capital and skills flight? MJ: I don’t think so. It’s probably the first time we’ve raised tax to th...
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