COLLECTED INCOME: Mboweni’s surprise tax treat
Many expected the Treasury to raise taxes. Instead, it took a gamble that to get growth, it had to cut them instead
If there was one sentiment that hung heavy over finance minister Tito Mboweni’s budget this week, it was the dawning of the grim reality that the SA economy is just too fragile to handle new tax increases.
This was the sober and sombre message from the National Treasury, after it fell R63.3bn short on revenue collection. To put the size of that shortfall in context, it’s a bigger miss than the SA Revenue Service sustained at the height of the global financial crisis 10 years ago.