Why The New Budget Is Bad News For You

Finance Minister Malusi Gigaba

Finance Minister Malusi Gigaba

On Wednesday, Gigaba announced a one percentage point hike in Value-Added Tax and an R85 billion cut in government spending over the next three years in what he's calling a "tough but hopeful Budget".

"However, the increase of these wealth taxes was a strategic move, in that Treasury has finally grasped the nettle and pulled the VAT lever".

"Agencies will be watching closely over the next three to six months to see how policies addressing job creation, poverty and economic transformation are implemented", he warns.

No sharp increases in personal income tax rates was announced.

The increase in social grants is an insult.

"The vague statements on the stabilisation of balance sheets of SOEs provide no certainty or confidence that further bailouts will be avoided", said Theron.

We are of the view that the alternatives to hiking VAT to close the revenue gap could be resolved by fixing the administrative capacity of the SA Revenue Service (SARS), including its ability to tackle tax avoidance and evasion by corporates and the wealthy because billions are taken out of the country illegally every year.

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Anne Arundel County police spokesperson Marc Limansky told USA TODAY Sports that the "investigation is ongoing". Both Rembert and Aaron came to Marshall from Oakland Mills High School.

"Most of the missing middle now qualifies for free education as well".

"This is the fast growing category [in the Budget], with an annual average growth of 13,7%", said Gigaba.

Funza Lushaka bursary scheme also received a financial injection of R 3.7 billion. Returning NSFAS students at university will have their loans for 2018 onwards converted to a bursary.

The community organisation however criticised the slashing of basic education funding, saying "the crises in our schooling system - early grade reading proficiency, infrastructure, safety, and scholar transport - means that attention to spending on basic education, and implementation of programmes should increase annually, especially until historic backlogs are remedied". "What we saw today is a outcome of nine years of mismanagement of the economy by the ANC". It will add R22.9 billion ($2 billion) to revenue every year. Their parents are regarded as too rich to receive free education and yet are too poor to afford to pay tertiary institution fees for their children.

The judgment is the latest legal blow to a senior South African government official and came with new President Cyril Ramaphosa considering a cabinet reshuffle after replacing scandal-plagued predecessor Jacob Zuma on February 14.

DA leader Mmusi Maimane said, "the budget hammers the poor and is a legacy of Jacob Zuma's disastrous management of the economy of South Africa".

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