'A tough, but hopeful #budget2018' - Gigaba

'Assault on the poor': S Africa's new budget slammed

Finance Minister Malusi Gigaba is set to deliver his maiden Budget speech on Wednesday amid speculation that it could also be his last.

The excise duty rate on luxury goods rises two percentage points to 9 percent, while a higher estate duty tax rate of 25 percent will be imposed on estates greater than R30-million.

And South Africa's Value-Added Tax rate was still below peer countries like Argentina, Zimbabwe and Russian Federation.

With a budget shortfall of R50 billion and government juggling numbers to find R40 billion for free tertiary education, compounded by the economy only growing at an uneasy 1%, the finance ministry will need to resort to tax increases to try and balance the books, without increasing government debt.

Gigaba said poor households would be cushioned through a zero-rating of basic food items such as maize meal and beans.

"Vulnerable households will also be compensated through an above average increase in social grants", Gigaba said. "All eyes will be on whether Gigaba will increase taxes or VAT, and how free higher education will be funded".

The minister said outside parliament in Cape Town, shortly before delivering the Budget Speech, that he would take the matter on appeal and his lawyers were working on the case because "at no stage was there an agreement with Fireblade".

'Assault on the poor': S Africa's new budget slammed

However, buried in the budget review document was the cyanide in the punch: cuts to other education programmes in the medium term, including goods and services.

It also revised its projection of GDP growth for 2017 to 1 percent, up from the previous 0.7 percent figure.

The budget deficit is expected to narrow to 3.5 percent of gross domestic product (GDP) by 2020 from 4.3 percent in the 2017/18 fiscal year, while gross debt is seen narrowing to 56 percent of GDP in the 2020/21 fiscal year from almost 60 percent seen in the October mid-term budget statement. "With the state of affairs in our country, high unemployment and inequality, too many people depend on incomes of individuals to survive", the EFF said.

More alternatives in its view could have been instituting a land tax, particularly on unused land, and increasing property taxes, particularly on non-residents and those owning multiple homes.

And R6-billion was found for drought relief and related public infrastructure development. Workers are not the ones who have looted Eskom, SAA and the state.

Fiscal discipline would be maintained, Gigaba said as the mantra of taking "the tough decisions" for sustainability and growth became the thread through the 2018/19 Budget.

Why has Delhi chief secretary not been arrested — AAP questions
It further said Prakash was trying to disrupt governance in the Capital. " Delhi Chief Secretary says he was beaten by AAP MLAs". Delhi Pradesh Congress Committee (DPCC) president Ajay Maken condemned the alleged attack on the Delhi chief secretary.

Related news:

Hot News

isis-killer-beheading-video-story-top Ultra HD Support Soon on Xbox One and Xbox One S
Feb 22, 2018 - 00:21
Since the latter made its debut a year ago , many were quick to compare its performance with the Sony PS4 Pro. The Indian government's decision to increase customs duty was announced during the Union Budget 2018.

isis-killer-beheading-video-story-top Trump son-in-law Jared Kushner unaffected by security clearance crackdown, White House says
Feb 22, 2018 - 00:20
Kushner's ability to continue to do the very important work he has been assigned by the president". "The new policy announced by General Kelly will not affect Mr.

isis-killer-beheading-video-story-top UFC Fighter Refuses To Win When Opponent Slips — Incredible Sportsmanship
Feb 22, 2018 - 00:18
UFC Fight Night 126 was a somewhat underrated card, to begin with, and delivered in a huge way--violence and finishes galore. That's a little above and beyond the norm, but not unheard of, but what happened after their fight was something special.

isis-killer-beheading-video-story-top Ferrari 488 Pista announced
Feb 22, 2018 - 00:17
Given quoted top speeds of 340km/h for the GT2 RS and Pista , and 341 for the 720S, we'll call it a three-way performance tie. The racing stripe continues over the curved roofline and exits off the carbon-fiber rear spoiler like a ramp.

isis-killer-beheading-video-story-top Roger Federer the 'complete player' with number-one return: Rainer Schuettler
Feb 22, 2018 - 00:17
He glided past Grigor Dimitrov 6-2 6-2 in the final, two days after becoming the oldest player to top the ATP rankings, aged 36. It's the ultimate achievement in our sport to get the number one ranking, it just doesn't come easy".

isis-killer-beheading-video-story-top Everything we think we know about the Samsung Galaxy S9
Feb 22, 2018 - 00:16
The displays on the Galaxy S9/S9 + appears to be identical with the Galaxy S8/S8+ that pushes a Quad HD resolution of 2960×1440. The Galaxy S9 will pack a 3000mAh capacity battery , while the bigger Galaxy S9 is expected to feature a 3500mAh battery .

isis-killer-beheading-video-story-top Pakistan's Supreme Court bars ousted PM Nawaz Sharif from leading PML-N
Feb 22, 2018 - 00:14
The information minister said all Constitutional departments should play their role for upcoming Senate Elections. Justice Nisar, however, said that in Pakistan's political setup, political parties are personality driven.

isis-killer-beheading-video-story-top Trump signs order to ban gun 'bump stocks'
Feb 22, 2018 - 00:12
According to the New York Times, the National Rifle Association (NRA) has previously backed further regulations on bump stocks. On Monday, the White House said Mr Trump would be supportive of proposals to improve background checks before gun purchases.

isis-killer-beheading-video-story-top Bubba's Back With Big Riviera Win
Feb 22, 2018 - 00:12
Watson had a very balanced performance in terms of stats even though he did not get at the top of any stat category. The 32-year-old Dutchman shot a 4-under 68 to finish at 16-under 272, two shots ahead of England's Chris Wood (69).

isis-killer-beheading-video-story-top Walmart Stock Plunges On Profit, Online Sales Growth Declines
Feb 22, 2018 - 00:09
Walmart is building fewer big stores and focusing on investments in its online business while beefing up benefits for its workers. Grocery store operators, retailers, health care companies and industrial stocks accounted for much of the market's slide.

isis-killer-beheading-video-story-top Broadcom Lowers Qualcomm's Offer in Response to Sweetened NXP Bid
Feb 22, 2018 - 00:08
NXP Semiconductors NV's Average Earnings Estimate for the current quarter is $1.67, according to consensus of 14 analysts. Sixteen research analysts have rated the stock with a hold rating and one has given a strong buy rating to the company.

isis-killer-beheading-video-story-top Watch SpaceX's Falcon 9 rocket launch
Feb 22, 2018 - 00:07
There is a very important milestone on the horizon - and that is the first launch of astronauts on-board the Crew Dragon capsule. They're not cheap to create; fairing reuse could save the company around $5 million, Tariq Malik of Space.com reports .

isis-killer-beheading-video-story-top Uber Just Launched a New Option With Its Cheapest Fares Yet
Feb 22, 2018 - 00:06
The ride ends at a spot near your destination chosen by the driver, requiring the user to walk a short distance. Earlier this month, Uber settled a self-driving lawsuit with Google-owned company Waymo over trade secrets.

Barcelona are great even without Neymar - Willian
Feb 22, 2018 - 00:06
Only Cristiano Ronaldo (56) and Lionel Messi (38) have scored more goals in the Champions League knockout phase than Muller (21). Chelsea hit the woodwork twice in the first half before scoring the opening goal of the game in the 61st minute through Willian.

isis-killer-beheading-video-story-top Jennifer Lawrence Has Strong Feelings About Her Dress Controversy
Feb 22, 2018 - 00:06
As controversy swirls around Jennifer Lawrence's latest fashion choice, the actress is standing by the dress she wore. She replied with a laugh: "What if I was like, 'He's hot!' and he's 15?" Everything you see me wear is my choice.