#Budget2018

Increase in VAT will push to a higher inflation rate says economist #Budget2018

Minister of Finance Malusi Gigaba is preparing to deliver what economists say is the toughest budget speech in years.

Chief economist at Stanlib Kevin Lings says government might be tempted to increase VAT because it would bring a sizable income to Treasury and help with the deficit.

Lings says government is currently facing a huge revenue shortfall of over R50 billion which it must cover.

[With] increased taxes in the country, including VAT then generally you would expect higher wage demands.

Kevin Lings, Chief Economist at Stanlib

Lings says VAT increase could bring a revenue of R15 billion to R20 billion which is good but has social consequences. He suggests that the minister could look at expenditure control or reduction to have lesser tax hikes.

There is a lot at stake here, the question is though how does government try and close this deficit? From our perspective, it would be welcome if there were significant expenditure reductions.

Kevin Lings, Chief Economist at Stanlib

Listen to some taxes that might push an inflation hike:


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
[LISTEN] Sin taxes don't provide much revenue: #Budget2018

[LISTEN] Sin taxes don't provide much revenue: #Budget2018

Tax expert Khanyisa Cingo shares her forecast for Wednesday afternoon's 2018 budget speech.

[LISTEN] 'Gigaba must comfort investors'

[LISTEN] 'Gigaba must comfort investors'

Ahead of today's budget, one economic strategist says Finance Minister Malusi Gigaba has his work cut out for him

#BudgetSpeech2018:  'A 1% increase in VAT can probably cover about R 22 billion'

#BudgetSpeech2018: 'A 1% increase in VAT can probably cover about R 22 billion'

Economists explain how tax hikes,higher value-added tax (VAT), could help plug a R50.8 billion revenue gap in 2017/18 fiscal year.

'Treasury may introduce VAT on fuel, a big money-spinner'

'Treasury may introduce VAT on fuel, a big money-spinner'

The Money Show’s Bruce Whitfield interviews Old Mutual Multi-Managers Chief Investment Strategist Dave Mohr.

‘A tough Budget is a good Budget. We need a VAT increase’

‘A tough Budget is a good Budget. We need a VAT increase’

The Money Show’s Bruce Whitfield interviews Old Mutual Asset Management Economist Johann Els.

Popular articles
Stealthing: a form of rape, says Dr Tlaleng

Stealthing: a form of rape, says Dr Tlaleng

'Stealthing' is the act of discreetly removing the condom without the knowledge or consent of the other party during sex.

Afroworld View employees left jobless, as DStv shuts it down

Afroworld View employees left jobless, as DStv shuts it down

CWU says 350 workers from Afroworld View will be paid at the end of the month even though the channel has closed.

[WATCH] Guy gives girlfriend the hood from his jacket but keeps coat for himself

[WATCH] Guy gives girlfriend the hood from his jacket but keeps coat for himself

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.