Experts caution against tax increases in 2023 budget

Tax experts say Finance Minister, Enoch Godongwana, is unlikely to make major tax adjustments during his 2023 Budget Speech in the Cape Town City Hall this afternoon.

They say given the current difficult economic climate, increasing taxes is a not an option.

Any increases to the corporate, personal or value added tax would be a huge blow to efforts to revive the economy.

Head of Tax at auditing firm PricewaterhouseCoopers, Kyle Mandi, says sin tax, fuel and the Road Accident Fund levy might see increases in line with inflation.

Mandi says government will focus on optimising revenue collection.

“Improving revenue collection through compliance activities, narrowing the tax gap etc rather than raising the tax. What we might see however is some relief given to business – the fuel taxes that they are paying  being used in diesel generators.”

In the report below, tax remedies to alleviate impact of energy crisis: 

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