Do You Know Where Your Tax Rands Actually Go?

In the coming financial year, the South African government will pay R1.1 billion every day to service its debt.

R1.1 BILLION!!!!!!!

Every. Single. Day.

But wait, there’s more…

This will increase to R1.3 billion a day by the 2027/28 financial year.

I for one, however, am not convinced that paying 15.5% less for edible offal and tins of beans and peas is going to soften the overall effect of the VAT increase to any great degree for the majority of South Africans, especially when debt servicing costs remain the fastest-growing expenditure item in the budget.

Numerous economists warn that increasing spending on servicing debt will have dire consequences for our country. It will overshadow desperately needed expenditure on critical sectors such as healthcare, infrastructure and healthcare.

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article - https://lnkd.in/dtWn--SR

 

#budget #budgetspeech #VAT #VATincrease #debt

#southafrica