South African Budget Newsletter written for Crowe HZK by Kent Karro, Managing Director of Crowe Taxation Cape (Pty) Ltd.
The Minister of Finance, Mr Tito Mboweni, delivered his annual budget on Wednesday 26 February 2020.
This was a bold budget with tax reductions for individuals and the intimation of future tax rate cuts for companies. Besides actual announced changes, the Budget documents contain numerous and far reaching proposals.
With the expected low economic growth rate forecast, it was widely anticipated that tax increases may have been announced in the areas of VAT, tax on capital gains or even estate duty. The fact that this did not occur reflects the Government’s clear intention to stimulate the economy and increase the overall tax collection by reducing tax lost because of reduced tax morality and (inter alia) inadequate tax collection efforts.
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