HILARY JOFFE: Individual taxpayers bear brunt of ‘stealth tax’

If ever there was a case to tighten SA’s inflation target it was the almost R60bn of extra income tax that finance minister Enoch Godongwana extracted from individual taxpayers in last month’s budget.

This is the amount he expects to raise over the next three years simply by not adjusting tax brackets for inflation. It’s the classic stealth tax: so-called fiscal drag, where people get inflation-related pay increases that jump them into higher tax brackets, enabling the government to collect more without raising tax rates...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Subscribe Sign in

Cancel anytime.

Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

SIGN UP

SIGN IN

Please read our Comment Policy before commenting.