#Budget2018

‘A tough Budget is a good Budget. We need a VAT increase’

It needs to be a tough Budget. A tough Budget will be a good Budget… We will have to do some drastic things…

Johann Els, Old Mutual Asset Management

Few things in this life are certain.

Death and higher taxes in 2018 chief amongst them.

Expect no good news from this year’s Budget Speech.

President Cyril Ramaphosa is putting pressure on the Finance Ministry to slash spending and increase revenue.

There’s a R50-billion budget shortfall to deal with, on top of funding for fee free higher education.

It is yet unclear if Malusi Gigaba will be the Minister of Finance that will deliver the Budget Speech on Wednesday.

The Money Show’s Bruce Whitfield interviewed Old Mutual Asset Management Economist Johann Els.

Listen the interview in the audio below (and/or scroll down for more quotes from it).

I wouldn’t be surprised at all if there’s new, top marginal rate…

Johann Els, Old Mutual Asset Management

We need a VAT rate increase… it’s a regressive tax but, perhaps in South Africa, not that regressive… We’ve got a significant social security system… We have a big portion that is zero rated… We haven’t seen a VAT increase since the early 90s… Some of the extra income can be redistributed to the poor…

Johann Els, Old Mutual Asset Management

The probability of a VAT rate increase has increased… but it’s still a political hot potato…

Johann Els, Old Mutual Asset Management

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : ‘A tough Budget is a good Budget. We need a VAT increase’


Recommended

by NEWSROOM AI
Read More
[LISTEN] My reaction was superseded by a call to service - Nhlanhla Nene

[LISTEN] My reaction was superseded by a call to service - Nhlanhla Nene

Bongani Bingwa speaks to incoming Finance Minister after his come back to cabinet was announced by the President.

What does it take to reject a VAT increase in the budget?

What does it take to reject a VAT increase in the budget?

Leon Louw, from the Freedom Market Foundation explains how Parliament could reject the VAT increase.

Political Desk: 'Finance minister did a bit of an ambulance job' #Budget2018

Political Desk: 'Finance minister did a bit of an ambulance job' #Budget2018

Director of the Rhodes Business School Professor Owen Skae explains why VAT a was logical decision but not a popular one.

Fault line between DA and EFF: To hike corporate tax or not  #Budget2018

Fault line between DA and EFF: To hike corporate tax or not #Budget2018

DA says corporate tax should be reduced to stimulate economy while the EFF argues that corporates should be taxed more.

Good news, but is it enough? Universities SA on R57 billion education boost

Good news, but is it enough? Universities SA on R57 billion education boost

Universities SA says it's concerned the money may not be enough and wants Treasury to provide calculations.

‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

Bruce Whitfield asks Business Day Editor-in-Chief Peter Bruce to speculate on President Cyril Ramaphosa’s Cabinet.

Popular articles
[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

Pieter du Toit on VBS, Malema's EFF and contradicting ethics

Pieter du Toit on VBS, Malema's EFF and contradicting ethics

Malema has accused the rogue unit of still being operational and Pravin Gordhan of working in the background against the EFF.

SA's Michael Houlie (18) talks clinching gold in historic Youth Olympics swim

SA's Michael Houlie (18) talks clinching gold in historic Youth Olympics swim

SA swimming sensation Michael Houlie took gold in the men’s 50m breaststroke final at the Youth Olympic Games last week.

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Cheryl Zondi is testifying against Pastor Timothy Omotoso who is accused of rape and human trafficking in his Durban church.

[WATCH] A golden buzzer for South African trio on talent show

[WATCH] A golden buzzer for South African trio on talent show

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

'The EFF seems to be trying to find scapegoats'

'The EFF seems to be trying to find scapegoats'

Deputy Editor at Financial Mail, Sikhonathi Mantshantsha, seems to be finding excuses as to why its leaders are in trouble.

VBS gave Zuma R8.5m before any security was provided for loan - News 24 journo

VBS gave Zuma R8.5m before any security was provided for loan - News 24 journo

News 24 investigative journalist Kyle Cowan reports that Zuma was granted the loan despite the fact that he could not afford it.

Julius Malema is captured, says Kenny Kunene

Julius Malema is captured, says Kenny Kunene

Kenny Kunene describes the issues he has with EFF leader Julius Malema.