JOHANNESBURG – Economists have warned that an increase in personal income and corporate taxes will have dire implications for the economy.
Taxes are in the spotlight as Finance Minister Enoch Godongwana is under pressure to improve South Africa’s fiscus.
Over 50 percent of South Africa’s revenue comes from personal income and corporate taxes.
The alcohol and tobacco industries contribute around 10 percent in taxes.
But industry bodies are calling on the minister to leave excise tax at the current rate.
They say the industry was brought to its knees by alcohol bans.
The sector, which employs more than a quarter of a million people, is still reeling from lockdown restrictions.
It has also suffered greatly from the growth in the illicit trade of tobacco and alcohol products.