What to expect from the upcoming national budget: Investec’s insights on sin taxes

WITH less than a week to go before the next iteration of the National Budget, Investec doesn't anticipate major personal tax increases, although cigarettes and booze are, again, likely to cost more.

- NICOLA MAWSON

Finance Minister Enoch Godongwana will, for the third time this year, present government's fiscal framework in Parliament after two previous versions were rejected because of proposed VAT hikes. The National Budget will be tabled on May 21.

The February National Budget proposed taking VAT from 15% to 17%, while a March document instead aimed to increase this tax by 0.5 percentage points. The second attempt to pass the document, which was mired in confusion as it was not clear whether the VAT hike had been approved, was challenged in court by the DA and EFE.

Days before a judgment was set to be handed down ~ which would have been a day before the proposed VAT hike came into effect - Godongwana reversed track and said that he would drop the intended VAT increase.