The National Treasury did its best to deliver a progressive budget that stays the course of fiscal consolidation while attempting to promote transformation and greater economic inclusion of the disadvantaged. However, medium-term growth expectations remain dismal. The national chief financial officer's office is doing its best to improve the government's financial position by raising revenue and curbing spending, but this is a painful process. The government plans to increase revenue by R28-billion this year. The proposed tax changes are set to hit higher-income earners hardest, with a new tax bracket for about 100,000 South Africans earning more than R1.5-million a year. Revenue will also rise from a partial adjustment of tax brackets for the effects of inflation, by raising the dividend withholding tax to 20% from February 22, increasing the general fuel levy by 30c/litre and the Road Accident Fund levy by 9c/litre. The health promotion levy on sugary beverages will be implemented...
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