Increasing individual tax rates any further was unsustainable, several tax professionals argued in Parliament Wednesday. They were commenting on the announcement in the 2017-18 budget tabled by Finance Minister Pravin Gordhan last week that a new tax bracket for those earning more than R1.5m would be created at a rate of 45% and that there would be limited relief for fiscal drag. South African Institute of Tax Professionals head of tax policy Erika de Villiers said the limit of tax increases was being reached and a "tipping point" was approaching. Her comments were made in a presentation on the budget during public hearings held by Parliament’s finance committees Deeper cuts in government spending were needed to match the tax increases, De Villiers said. "Government and the private sector should share the pain. Further spending on new programmes such as national health insurance should be delayed until affordable." PricewaterhouseCoopers tax policy leader Kyle Mandy also argued that...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now