Unpacking South Africa’s latest tax hikes
It was easy to predict that the 2018 budget would be similar to those of previous years. Taxes were raised, and expenditures increased. This year's budget was notable for putting the issue of wasteful and fruitless expenditure in the spotlight. A new measure is being proposed in this regard, which will deny tax deductions to state-owned entities for expenses or losses classified as wasteful and fruitless. In order to reduce the annual rise in budgeted expenses, it is proposed that cabinet expenses be reduced by R85 billion in the next three-year period. This proposal is positive and shows that the...