Budget 2017
MARKET REACTION: Mixed bag of fortunes, hits and misses
The market took the 2017 budget speech in its stride
The market took the 2017 budget speech in its stride — even though the proposed hike in withholding tax on dividends to 20% might have irked investors. The JSE all share index firmed slightly after the reading of the budget speech — though it still finished the day down. On the currency front, the rand weakened slightly against the dollar. Remgro CEO Jannie Durand believes finance minister Pravin Gordhan made the best of a difficult situation. "Having to commit to a high percentage of social spending in an economy that is not growing is difficult. It was a case of damned if you do, damned if you don’t." Durand argues that the decision not to increase the Vat rate meant a continuation in the concentration of the tax burden on a section of the population. "This is a bit of a concern ... high earners are often very mobile."
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