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Covid-19 vaccine: Government may have to milk bone-dry taxpayers some more

18 January 2021 6:25 PM

Treasury is mulling raising taxes, says Prof Adrian Saville, Chief Executive of Cannon Asset Managers.

RELATED: Free Covid-19 vaccine for all medical aid members – Discovery CEO


South Africa’s largest vaccination drive ever is imminent.

Treasury is considering a tax hike, along with several other measures, to pay for it.

Other options include increasing the budget deficit and reprioritising spending.

© goodluz/123rf.com

Rich countries and some poorer ones have started vaccinating their populations against Covid-19.

A handful of countries – notably Israel (28% vaccinated) and the UAE (19% vaccinated) – is set emerge from the pandemic sooner than anyone would have expected a few short months ago, having already vaccinated large proportions of their populations.

South Africa, however, is still watching from the side-lines, for now.

The Money Show’s Bruce Whitfield interviewed Professor Adrian Saville, Chief Executive of Cannon Asset Managers.

It’s very hard to imagine how this economy will generate cash flow to fund new spending… It could be funded by curtailing spending, but we don’t have evidence of that. Fiscal discipline is missing in action… It’s bizarre that there are still conversations about SAA…

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

A Covid-19 vaccine is [important] way over and above anything else… If we remain gripped by the pandemic, those [economic] plans will come to nought… It’s the most important priority.

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

R20 billion… is not a big number. It’s substantially less than 1% of government spending…

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

We have no evidence of fiscal discipline… most obviously, the wage bill.

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

Economically, it’s not possible [tax hikes] … Taxpayers are missing in action… There are some silver linings, but they don’t come close to lighting a very dark economy.

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

The best course of action is reprioritisation… We won’t get a stronger economy by cutting spending…

Professor Adrian Saville, Chief Executive - Cannon Asset Managers

Listen to the interview in the audio below.




18 January 2021 6:25 PM

More from Covid-19 coronavirus explained

Third wave 'inevitable' says expert, as country moves to Level 1

1 March 2021 9:02 AM

The onset of winter and slow roll-out of the vaccine programme also likely to contribute to a third surge says expert.

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'The Aussies are arrogant; it’s our turn! Host Lions in S Africa, or postpone'

18 February 2021 2:00 PM

Australia wants to host South Africa and the British Lions. "We must put pressure on them to postpone," pleads Wynand Claassen.

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Scotland threatens to close its 'border' with England

17 February 2021 10:24 AM

It is wrong for Scotland to try and impose its laws, said one UK MP, calling Scottish threats "ridiculous" and "bearing no logic".

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South Africa starts largest vaccination campaign in its entire history

17 February 2021 9:02 AM

"Tygerberg Hospital gets 7400 vaccines and Groote Schuur gets 5760. Chris Hani Baragwanath gets just over 11 000," says Mia Malan.

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Coffee production costs are spiking - supply chains are holding up

16 February 2021 2:32 PM

Migrant workers struggling to get to farms is causing a spike in production costs, says Robert Coles (Rosetta Roastery).

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UCT trials next-gen Covid-19 vaccine to beat all current and future variants

16 February 2021 11:43 AM

The vaccine is developed by ImmunityBio, headed by South African billionaire Patrick Soon-Shiong (aka "world's richest doctor").

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South Africa is about to start vaccinating against Covid-19 after initial hiccup

12 February 2021 2:46 PM

Africa’s Covid-19 epicentre is about to start rolling out vaccines proven to be effective against the 501.V2 variant.

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Germany – worried about virus variants - extends hard lockdown to 7 March

12 February 2021 10:53 AM

The EU-powerhouse has been in hard lockdown since before Christmas. Kieno Kammies interviews Deutsche Welle’s Janelle Dumalaon.

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German army brings hope – and doctors and ventilators - to crumbling Portugal

4 February 2021 10:22 AM

Hospitals across Portugal are all but collapsing, but in a "vivid sign of European solidarity", the German army is flying in hope.

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Doctors in SA may now prescribe Ivermectin to treat Covid-19 – High Court

3 February 2021 1:18 PM

"It should only be used in severe cases," says virologist Burtram Fielding, "Safety data is available; there are side-effects."

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