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'Tax Revolt' Rumours Spreading in Small Municipalities; Moody's Warns Of More Downgrades

SOUTH AFRICA

LOCAL NEWS

  • Rumours of brewing discontent emerging in ratepayers associations ahead of possible tax increased at the Feb 24 budget.
    • A number of associations are talking about a 'tax revolt/diversion campaign' in lieu of poor service delivery and maintenance.
    • Although only small municipalities have been the culprits, revolts have been spoken about in major metros in the past and are worth monitoring
  • Moody's warns SA may face more downgrades if the debt situation worsens further. Says pandemic has impacted revenue collection, raised borrowing costs and dented growth prospects.
    • Notes limited reform progress, shocks to primary expenditures/revenues or interest rate volatility could lead to another downgrade. Forecast 100% debt:GDP by 2022 (earlier than Govt's 97% peak in 2025/26)
  • Portfolio Committee On Health to be briefed on AstraZeneca & J&J vaccines today amid calls to not let 1.5m AZN vaccines go to waste (expire in April), but be used in severe cases, despite 22% efficacy
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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