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Pretoria - It will take a huge effort to achieve the R745bn revenue target announced in the Medium-Term Budget Framework.
Any significant tax relief is therefore unlikely, said André Roux, head of fixed income at Investec Asset Management.
On Wednesday Finance Minister Pravin Gordhan will deliver his second budget speech in parliament.
Roux expects a budget deficit of 5.5% of the gross domestic product (GDP), which will be slightly larger than forecast.
The biggest challenge to achieving a smaller deficit is expenditure. If the 0.5% shortfall on GDP is to be reduced, the government’s expenditure would have to be cut by R10bn, he said.
Mazars national director of tax Johan Troskie said government would creatively have to devise ways to stimulate consumer spending.
He said this was an essential element towards reviving the economy.
The Institute for Chartered Accountants had again made an earnest plea for Gordhan to revisit the provisional tax system.
Muneer Hassan, tax project director at the institute, stated that the current legislation was unfair, in that it required taxpayers to pay more than they needed to pay.
Fines for underestimating income – which might simply be the result of circumstances like a late payment or a bonus – are automatically imposed.
Any significant tax relief is therefore unlikely, said André Roux, head of fixed income at Investec Asset Management.
On Wednesday Finance Minister Pravin Gordhan will deliver his second budget speech in parliament.
Roux expects a budget deficit of 5.5% of the gross domestic product (GDP), which will be slightly larger than forecast.
The biggest challenge to achieving a smaller deficit is expenditure. If the 0.5% shortfall on GDP is to be reduced, the government’s expenditure would have to be cut by R10bn, he said.
Mazars national director of tax Johan Troskie said government would creatively have to devise ways to stimulate consumer spending.
He said this was an essential element towards reviving the economy.
The Institute for Chartered Accountants had again made an earnest plea for Gordhan to revisit the provisional tax system.
Muneer Hassan, tax project director at the institute, stated that the current legislation was unfair, in that it required taxpayers to pay more than they needed to pay.
Fines for underestimating income – which might simply be the result of circumstances like a late payment or a bonus – are automatically imposed.
