Budget
South Africa raises income taxes for first time since 1995
South Africa will raise income taxes for the first time in twenty years, Finance Minister Nhlanhla Nene said in a gloomy budget speech on Wednesday, as he cut economic growth forecasts and widened budget deficit estimates.
South African Finance Minister Nhlanhla Nene delivers his 2015 Budget Speech
CAPE TOWN (Reuters) – South Africa will raise income taxes for the first time in twenty years, Finance Minister Nhlanhla Nene said in a gloomy budget speech on Wednesday, as he cut economic growth forecasts and widened budget deficit estimates.
Government revenues will remain depressed, leading to a budget deficit of 3.9 percent of GDP for the 2015/2016 financial year, above the 3.6 percent forecast in October, Nene said.
Substantial upcoming debt repayments meant government could no longer postpone raising additional revenue, including an increase to personal income tax rates.
"Today's budget is constrained by the need to consolidate our public finances, in the context of slower growth and rising debt," Nene said.