Dr Iraj Abedien, Chief executive – Pan African Capital Holdings says Minister of Finance, Pravin Gordhan will have to consider balancing the books, which at the moment are sitting at more than R30 million shortfall.
Gordhan is expected to deliver his budget speech in Parliament on Wednesday.
According to Abedien, Gordhan will have to raise taxes in order to balance the books saying 'the extra borrowing by the government is very limited'.
In all likelihood we are going to get personal income taxes going up, sugar taxes possibly and a whole host of small but significant taxes like tax on alcohol and cigarettes as well as tax on security...— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
The second consideration is how do we get the economy, which is under stress, growing...— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
The Democratic Alliance revealed the budget forecasts in Parliament and predicted an increase in personal taxes as well, saying South Africans are going to feel the pinch this year as Treasury looks to plug a R28 billion fiscal hole.
To hear more on budget speech predictions, listen below: