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Local Economists Expect Moderate Tax Increases to Fund Vaccines

  • Local economists do not expect proposed tax hikes aimed at funding the R20bn needed to fund the Covid-19 vaccination programme to be too aggressive during a pandemic
  • Expect Govt to combine a repriorisation of expenditure with tax hikes such as sin taxes and fuel levies
  • Another option is to breach the expenditure ceiling, which is also undesirable given debt: GDP in excess of 80%
  • Says a VAT increase is unlikely as it would compromise the recovery even more so
  • Treasury is expected to raise taxes by R5bn already, as mentioned in October
  • so space for further tax increases is critically constrained
MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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