Matthew Lester’s Budget warmup cocktail. Why VAT is PG’s ticket to retirement.

Matthew Lester

Immersing himself in the hotbed of education, Matthew Lester doesn’t shy away from sharing his knowledge beyond the walls of the institution. And with Pravin Gordhan’s budget around the corner, he’s back in the hot seat. In his budget warmup, he takes a look at his prospects for the 22 February event. He also offers some tips on how to score a tax deduction as the 2017 deadline looms. A must watch. You can also sign up for his free educational webinars. – Stuart Lowman

By Matthew Lester*

It’s that time of year when everyone is speculating on what will happen on the National 2017/18 National Budget Speech.

I do hope those who predict a VAT increase are as bonkers as I think they are. If that happens the Unions have promised action on a scale that will make the #FeesMustFall protests look like a Sunday afternoon bring and braai. Yes, a VAT increase is the quickest ticket for Finance Minister Pravin Gordhan’s admission to the shady pines retirement village.

And in the world post-Brexit and Donald Trump, increasing corporate taxes will just leave SA out in the cold.

So National Treasury has to find R28 billion from the personal taxpayer and a range of smaller taxes.

Have a look at the prospects in the video below, or sign up here. But beware, it is sponsored by Imodium. I call it: “Pravin Gordan’s lethal cocktail.”

And if you still want to score a tax deduction in your 2017 have a look at this.

  • Matthew Lester is an associate professor at the Rhodes Business School and a member of the Davis Tax Committee.
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