Budget in a nutshell: Treasury will hold line on fiscal consolidation plans
Achieving lower debt and deficit targets will depend on the economy achieving higher rates of growth in 2022 than previously forecast, Tito Mboweni said on Wednesday
The Treasury has committed to holding the line on its fiscal consolidation plans without imposing proposed tax increases of R40bn over the next four years, despite an extremely tight fiscal situation worsened by the Covid-19 pandemic.
Also, the corporate tax rate will be reduced from 28% to 27%, finance minister Tito Mboweni announced in his speech in parliament on Wednesday. This will be for the years of assessment commencing on or after April 1 2022 and will take place alongside a broadening of the corporate income tax base by limiting interest deductions and assessed losses...