Tag: tax increase
Budget 2023: Inflation – the invisible taxman
Inflation is the increase in prices over a specific period and which leads to a reduction in the purchasing power of money. The correlation between inflation and purchasing power is important because sometimes we are fooled into thinking that just because an amount increased, like your salary, your purchasing power remains the same.
New or higher taxes won’t work, and could be unconstitutional
The trade union federation Cosatu recently called for tax increases, particularly on the wealthy, to arrest South Africa’s economic down spiral. But economist Arthur B Laffer, known for popularising the Laffer curve, shows us that beyond a certain point, tax revenue will decline as tax rates increase.
Government stealth tax to fund ailing Eskom
Officially, for the 2019/20 financial year, government will not be increasing income taxes. The only taxes set to increase are the indirect taxes: fuel levies, excise duties on alcohol and cigarettes, and the new carbon tax coming into effect on 1 June 2019. With these increases government estimates that it will raise an additional R1.2 billion.
