Let’s take the tax win – small as it is

There is very little positive news these days but Finance Minister Enoch Godongwana’s budget at least didn’t further squeeze hardpressed South Africans.

There were no increases to personal tax… on the contrary, the minister announced R13 billion in tax relief across different sectors.

Although he said the government will be taking on a chunk of almost R250 billion of Eskom debt, there was no announcement of higher Pay As You Earn rates, nor even a once-off tax levy, favoured heavily by Robert Mugabe after independence as he struggled to finance his government’s grandiose transformation plans.

ALSO READ: More clarity needed on tax incentive for solar panels

Godongwana, while improving social grants and pensions, kept a tight leash on civil service pay – although more negotiations and possible strike action might lie ahead in that sector.

While Gondongwana’s proposals were hailed by most as being reasonable and in line with economic pressures, which will probably see our Gross Domestic Product growing by less than 2% in 2023, there were plenty of issues which were kicked down the road.

ALSO READ: Budget speech: Sin tax on alcohol, cigarettes increase, sugar levy gets reprieve

Eskom’s borrowing can be financed by government – but against further borrowing, which will worsen the country’s deficit. Still, for the time being, let’s take this as a win, small though it may be.