JOHANNESBURG – Don’t expect any major bombshells from Tito Mboweni when he delivers his maiden budget speech on Wednesday.
That’s according to Ruaan van Eeden, Managing Director, Tax Advisory at Geneva Management Group (GMG). Instead, he believes, Treasury will look to implement existing taxes more efficiently.
“I don’t think a new type of wealth tax is on the cards,” says van Eeden, “It’s too expensive to administer and the revenue to be collected will likely be immaterial in the bigger scheme to really make an impact”.
What’s more likely to happen, he believes, is that Treasury will take a targeted approach to things like the estate duty, transfer duty at the higher end of the market and donations tax where they feel there might be a little more wiggle room for increases.
Given last year’s increase, van Eeden states that it is unlikely that we’ll see an increase in the standard rate of VAT.