This as Finance Minister Enoch Godongwana prepares to make his third attempt at tabling the Budget on Wednesday, following a standoff over a VAT hike which National Treasury has since withdrawn. Chief Economist at Investec, Annabel Bishop, says while the Budget seeks to raise revenue, government may also be looking to cut down spending and limit borrowing.

“Looking forward, SA is not expected to see significant tax increases either. Instead, the Budget is likely to see most of the revenue raised from failure to give bracket relief when people’s salaries rise due to inflation-adjusted increases. Then, if the individual does not see relief in terms of going into a higher bracket, they do end up being taxed more. Also, on the cards, there is potential for a fuel levy and these factors in the main, along with expenditure cuts, should provide a balanced Budget,” says Bishop.

--SABC--