Friday, January 3, 2020

Flat Tax to Cause Rs78bn Hole in Treasury This Year


Because we’re definitely not getting the 8% growth rate promised to justify maintaining the destructive 15% uniform rate. Which would explain why we’ve hit a new low in the exercise of our sovereignty. And things will get worse every year with the shortfall rapidly rising to Rs136bn by the time we vote again in 2024. This means a cumulative shortfall of Rs528bn for the next five years bringing the total since this folly started in 2006 to Rs882bn. 

This leaves very little time for Mr. Padayachy, the new Finance Minister, to bring back our public finances on a more sustainable track. A new budget this month would help prevent his political career from going into free fall. 

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