Which tax increases do you expect in the 2020 Budget Speech?

Which tax increases do you expect in the 2020 Budget Speech?

  • VAT

    Votes: 50 70.4%
  • Fuel levies

    Votes: 59 83.1%
  • Sin taxes

    Votes: 63 88.7%
  • Medical tax credits

    Votes: 37 52.1%
  • Luxury goods tax

    Votes: 44 62.0%
  • Wealth tax

    Votes: 45 63.4%
  • Sugar tax

    Votes: 45 63.4%
  • Company Tax

    Votes: 31 43.7%
  • Income tax

    Votes: 55 77.5%
  • Other

    Votes: 21 29.6%

  • Total voters
    71

rpm

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Finance Minister Tito Mboweni will deliver his 2020 Budget Speech on 26 February, and most economists expect him to announce big tax increases. Which tax increases, or new taxes, do you expect to see?
 

konfab

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Jun 23, 2008
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I want to see the stupid tax be increased. Lottery ticket prices should be doubled.
 

Corelli

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Jun 20, 2008
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The 15% of tax payers that has to cough up for everyone else pretty much, will just have to open their wallets more. The government officials (dont want to renegotiate and declare war), so I suggest we tap into their pension and pay off Eskom's debt with their pension fund. Face it, the money Eskom can pay them back with interest is far better than any market can provide them at the moment.

Alternatively we will slide more into Junk, which means interest rates can reach ceilings of 23% again, which makes growth well pretty much non-existant. People will sell their rent to own houses, which would create a lot more homeless, no more buying fancy cars, etc.

I would be sad for anyone with debt. It's great my investment is just about to mature, so I will settle all my debt and have a few million to spare. But to be honest....

I will look at house shopping, because if you look at Cape Town's properties in the afluent areas you will see that they are dropping value by millions. Constantia, Claremont, Durbanville, etc are all on downward trends. It means either people are downsizing to more affordable housing, or emigrating. I honestly dont have any friends that want to emigrate but I know a lot are downsizing to more affordable smaller houses with all the luxuries (pools, braais, home cinemas) of the larger houses.

And then Corona will hit, and it will be pretty much all over. This is a perfect storm in a teacup unless proper decisions can be made.
 

ToxicBunny

Oi! Leave me out of this...
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Yeah straight up all of them, including a whole slew of new ones under "Other" that we haven't thought of yet.
 

Cius

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Jan 20, 2009
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VAT - 60% chance for me. A big win that went down softly last time they did it but it could explode so they are careful about this one. Big revenue though if they do it and they need a big boost so I think there is a good chance of this one.
Fuel levies - 80% Almost certainly, but again, direct economic impact and depending on size of hike potentially explosive due to taxi fare impact. So small to medium hike I recon here
Sin taxes - 100% When has this not been hiked. Just a question of how much
Medical tax credits - 20% Hopefully not yet, this will come later with NHI. Too early in the process to remove this
Luxury goods tax - Don't know much about this one so no idea, perhaps something around luxury vehicles.
Wealth tax - depending what you mean by this. Transfer duties and capital gains could be looked at as to be hiked as a form of wealth tax. Probably not but they won't adjust brackets here which effectively is an inflationary increase here
Sugar tax - 50% Perhaps inflationary increase here. Small revenue spinner, big noise item so they won't do much here
Company Tax - 10% They won't touch this. Not even the ANC is this stupid, then again...
Income tax - 80% Bracket creep almost a certainty. Perhaps even a new level for UHNWI of say 50% on amounts over 2M
Other- Once off tax like was done in the early 90's a possibility as seen in articles on this site. If it is raised it would be applied directly to lowering Eskom debt or something.
 

ToxicBunny

Oi! Leave me out of this...
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Apr 8, 2006
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And we were largely all wrong..

How Tito made us look like right royal tits...
 

Cius

Executive Member
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Jan 20, 2009
Messages
6,348
I was partially right. Never saw that they would get most of it buy cutting wage bill, however I think I was spot on on Sin tax, petrol levy, medical credits, and company tax. I was dead wrong about VAT and personal tax though.
 
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