The Nelson Mandela Bay Business Chamber has welcomed Finance Minister Pravin Gordhan’s “balanced” budget speech, however, it raised concerns over the fuel tax increase which will affect ordinary businesses and consumers.
Fuel taxes are expected to increase at 39c/litre.
CEO Kevin Hustler, agreed with Gordhan that the 1.3 percent growth rate expected for this year was much too low to turn around the economy and unemployment rate in the country, in particular in the Eastern Cape.
“While the Nelson Mandela Bay Business Chamber acknowledges the need for economic transformation, we agree with Gordhan that this transformation must be focused on growing more jobs and diversifying the economy to build real livelihoods,” said Hustler.
Hustler added that the raise in taxes to source an additional R28 billion was more or less expected looking at the current financial situation of the country.
Making his budget speech in Parliament on Wednesday Gordhan announced a new tax bracket for South Africa’s super rich to pay a tax rate of 45 percent. It affects those who have taxable incomes of R1.5 million, or R125,000 a month, and above.
It is part of increases in the Budget aimed at raising an additional R28 billion in taxes.
The Nelson Mandela Business Chamber called on government for further consultation, in particular with the industries affected, on the proposed Sugar Tax, as well as the Revised Carbon Tax.
“While the tax payer will again foot the bill this year, we commend Gordhan’s emphasis on greater austerity measures by government institutions and his call for ethical business dealings,” said Hustler.
-African News Agency (ANA)
