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Mboweni sticks to a realistic path in 2021/22 Budget


Feb 25, 2021
South African Finance Minister Tito Mboweni delivered the 2021/22 Budget on Wednesday that treads a pragmatic path between over-spending and too much austerity, as the economy grapples with the impact of Covid-19 and lockdowns.
By Wesley Grimm, Joon Chong, Cor Kraamwinkel from Webber Wentzel
The minister clearly listened to widespread calls to avoid raising taxes but also to allocate more funds to rolling out vaccines. Overall, it was an optimistic budget, but with some stings in the tail.
The Budget delivered good news for taxpayers on a number of fronts:
Households, particularly lower-income groups, will benefit from the above-inflation 5% increase in personal income taxes and rebates. ....

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Experts call for a 20% sugar tax hike to boost health


Experts call for a 20% sugar tax hike to boost health
Experts are calling for a 20% hike in sugar tax due to the health sector s ongoing battle with the COVID-19 pandemic.
Sugar tax hike
According to the
SABC, the proposal comes as Finance Minister Tito Mboweni is due to deliver the 2021 Budget Speech next week. Experts say a further increase in sugary beverages will not only result in a reduction in communicable diseases like diabetes, but it will also help support the country’s growing tax collection shortfall.
Government currently projects a R300 billion shortfall in revenue in this year’s budget. However, experts say a significant shortfall in the region of R250 billion is still on the cards. They add that the government has lost out on sin tax collections due to the ban on alcohol and cigarettes sale during the lockdown. ....

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