Finance Minister Enoch Godongwana will take the nation into his confidence on Wednesday as to how National Treasury plans to raise additional revenue and allocate its limited resources to many of government’s priorities.
And whether it is still on track to whittling down the nation’s sovereign debt and importantly, the annual debt service costs.
According to PWC, SARS has reported higher than expected revenue coming in on a monthly basis, which may result in National Treasury’s original revenue target being exceeded in the 2025/26 fiscal year.
Kyle Mandy is PWC Head of Tax, “There’s a good chance that the R20-bilion worth of tax increases that were penciled into last year’s budget for this year will not go ahead or, at least, not go ahead to that same extent, so we’re pretty hopeful that we’ll see some relief insofar as pit is concerned for fiscal drag, hopefully full relief, but at the very least partial relief.”
Meanwhile, last year, proposed VAT changes set off an impasse with the DA that threatened the GNU.
