Tax increases unlikely in 2019, according to PwC report
Despite the recession, tax revenue collection has performed well
South Africans could be saved from tax increases in 2019, a report from PricewaterhouseCoopers (PwC) suggests. The report comes a week before Finance Minister Tito Mboweni delivers the medium-term budget policy statement in parliament. According to PwC, the Treasury is largely expected to maintain its February forecast for tax revenues for 2018-19. While a downward revision for corporate income tax is expected, it will be largely offset by an upward revision for value-added tax (VAT) and import duties, reads the report. “For the first time in a number of years it is looking likely that further significant tax increases may not be required in the February budget, something that the government would want to avoid in an election year,” PwC head of tax policy Kyle Mandy said. This is despite SA falling into a recession for the first time since the global financial crisis 10 years ago. Former finance minister Nhlanhla Nene warned in September that the recession could dent tax revenue col...
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