Co-Founder at TaxTim Marc Sevitz says no tax decrease for tax payers may be the only disappointment in Finance Minister Tito Mboweni's budget speech.
Mboweni delivered his maiden Budget speech in Parliament on Wednesday.
Tax revenue has been revised down by R15.4 billion compared to treasury's October estimate. Mboweni said there will be no increases in income tax rates and the VAT rate will remain unchanged.
Sevits shared his views on The Money Show with Bruce Whitfield.
Sevitz says the excuse that the under-collection is due to extra VAT payouts and refunds does not hold water.
Because if that is how the economy is working and there is a VAT refund, it says something about the growth in the economy. So the growth rate that has been reduced each year means fewer collections, which means less money and expenditure going up. So where is the money? It can't come from more taxes so it doesn't work.— Marc Sevitz, Co-Founder - TaxTim
Majority of taxpayers will get R153 more in their pocket this year. So the tax bracket not moving for inflation has not resulted in anyone getting an inflationary linked increase as well. They are feeling the full effect of that, so the cost of living becomes more expensive.— Marc Sevitz, Co-Founder - TaxTim
Sars in blunt terms used to help you out by giving you that inflation increase. The larger percentage or bracket that you may fall into - the higher marginal rate - means that that new amount is being taxed more.— Marc Sevitz, Co-Founder - TaxTim
The result is people have less money to spend, he concludes.
Click on the link below to hear more from Sevitz...
Enjoy The Money Show, but miss it sometimes?
Get the best bits emailed to you daily, right after it ends:
Recommendedby NEWSROOM AI
Economist Xhanti Payi and Prof Osman Mollagee give their take on Minister Tito Mboweni's budget speech.
Outa's CEO gives his take on Mboweni's budget speech and predicts that e-tolls are on their way out.
In his first budget speech, Tito Mboweni pledged a conditional R23bn a year for Eskom and a pay freeze for MPs and MPLs.
Life is expensive. Here's a list of where and how senior citizens can enjoy a wide range of specials to get more bang for their buck.
Mboweni is delivering the Budget 2019 in Parliament on Wednesday afternoon.
Bruce Whitfield interviews Eric Mabuza who will represent the dismissed Old Mutual CEO in a court challenge against his firing.
Lay-by has taken off as a payment option in the last year or two, says consumer journalist Wendy Knowler.
The Money Show’s Bruce Whitfield interviews WeBuyCars founder Faan van der Walt for his weekly "ShapeShifter" feature.
Former State Security Agency director general Arthur Fraser says he has suffered repuational damage because of Pauw's book.
Khabazela shares tweets and Facebook posts that have gone viral.
Bio-Technology Ph.D. student at the Israel Institute of Technology Alona Shagan explains device similar to a standard glue gun.
The Democratic Alliance MP claims she was subjected to a racist tirade at Cape Town's V&A Waterfront and wants action taken.
The Money Show’s Bruce Whitfield interviews Simon Brown, Financial Educator at Just One Lap.
It also ordered the company to pay for all the costs of the application. Bruce Whitfield interviews EWN’s Clement Manyathela.