“Now let’s get on with it! Structural Reforms are fundamental to getting this economy moving. We are ready Mr President! Implementation time. No stone should be left unturned!! No holy cows,” tweeted Finance Minister, Tito Mboweni, post the budget speech of yesterday.
Give that man a double Bells.
With the Minister’s 2020 Budget Speech, sustainability of the future of South Africa’s economy took front seat by focusing on the changes both consumers and businesses can expect. According to an Allan Gray media release, the speech brought a pleasant surprise to cash-strapped consumers and taxpayers.
“The announcements saw no additional increases to Personal Income Tax and Value Added Tax (VAT), despite the many predictions in the lead up to the speech. Instead of raising additional revenue from tax proposals, the focus moves to reducing spending, which includes a reduction to the wage bill of roughly R160 billion,” says Carla Rossouw, tax lead at Allan Gray. Portfolio Manager Sandy McGregor, also at Allan Gray, adds: “The Budget reflects the realities of the situation South Africa finds itself in. The scope to increase taxes is limited.”
Click here to download the media release that provides more detail about these adjustments.
Van der Spuy and Partners also published a summary of the budget speech that shares the changes that both consumers and businesses can expect.