It is necessary for Minister Tito Mboweni to revise growth forecast - expert

All eyes will be on Finance Minister Tito Mboweni when he delivers the 2020 budget speech.

The budget will give details of how the priorities set out during President Cyril Ramaphosa's State of the Nation Address (Sona) will be funded.

Wits University head of school of economics and business sciences professor Jannie Rossouw says the minister has the option of increasing the VAT rate.

He can increase it to 16% or introduce a new personal income tax of 50% on income of R2 million or R3 million.

Professor Jannie Rossouw, Head of school of economic and business sciences - Wits

If you increase personal income tax, professional people will simply emigrate, leaving the country poorer. He has a difficult balancing act.

Professor Jannie Rossouw, Head of school of economic and business sciences - Wits

It is necessary for the minister to revise the growth forecast and to revise government revenue based on the growth forecast.

Professor Jannie Rossouw, Head of school of economic and business sciences - Wits

RELATED: Tito Mboweni increasing VAT is not politically palatable at moment - Economist

Trade Collective senior research fellow and political economist Lebohang Pheko says Eskom has become an invisible tax.

I'm not sure if there is enough pocket appetite for more bailouts, especially to Eskom.

Lebohang Pheko, Senior research fellow and political economist - Trade Collective

Listen to both interviews below...


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