Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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Most financial experts would have told you, six months ago, that a tax hike for individuals in South Africa was extremely likely in this year’s budget speech which would be towards the end of February. The situation has now changed, and I certainly hope the Minister of Finance is taking note of the pressure that ordinary people are in, particularly couples with children. It is very easy to survive on a lot less money if you don’t have children or if you are single than if you have to cover the cost of schooling – something that we used to take pretty much for granted and for free in South Africa 20 or 25 years ago.
The reason a tax hike is necessary is because the government is spending more than is coming in each year, and you cannot continue to fund deficits by borrowing money from overseas – somewhere you have to start raising the taxes. The reasons why it would be inopportune to do so this year, include amongst other things the e-tolls that people living in Gauteng now have to pay, the higher cost of any imported goods as a result of the Rand weakening, the record-breaking petrol price that we currently have, not to mention the first of what is undoubtedly many interest rate hikes. People are feeling pressure right now, and the last thing they can do having just started paying e-tolls, 0,5% extra on their house and motorcar finance, not to mention the normal increases on school fees, is to now be hit with an individual tax rate hike. We will have to hold our thumbs, because as I say, some six months or so ago one would have thought it was inevitable and in the long term it has to be. It is not as if our mining sector is paying as much tax as it could be with productivity down with the workers going on strike every year now!
Posted by Michael de Broglio on Tuesday 18-Feb-14
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Comments
Angelique said:
on Thursday 20-Feb-14 09:11 AM
The citizens have to suffer because of the governments misuse of funds! People striking, president taking advantage of funds all boils down to the citizens who make the money suffering!!! Even bigger reason for everyone to vote for a new government. This sickens me. There are no jobs and if you are lucky to have a job - you are working to survive! Will not be having children any time soon - not that I have a choice.
stephanie said:
on Tuesday 18-Feb-14 11:17 AM
This really scares me looking at my future in this circumstances. Not only for me but what about my children? Life is very unfair, might as well get use to it, I don't think it is going to get any better.
Thabitha said:
on Tuesday 18-Feb-14 10:21 AM
Nowadays life is becoming more difficult and its even more difficult for single parents.
Brenda said:
on Tuesday 18-Feb-14 09:13 AM
What can I say that has not already been said? The government knows that they can get away with tax hikes because people are desperate for jobs, and when you have a job, you have to pay tax. But what they don't realise is that at the end of the day, with petrol prices sky rocketing and with the e-toll system, people are not going to be able to afford to travel to and from work and will ultimately end up losing their jobs. The people who lose their jobs, the less tax will be paid and the worse off our country will become.
Juliet said:
on Tuesday 18-Feb-14 09:05 AM
No wonder every one has left and is continuing to leave this country. Why stay here and work to earn money just to pay to survive, no extra money for anything extra when you can work in London and earn 18.6 times more than you would here for doing the same job! Plus have free medical aid, excellent public transport, hardly any crime, be able to walk down the road without being hit by a taxi. The SA government is like a greedy, spoilt child who is just so happy eating a big apple now, juicy big apple, for now, but there is a worm in that apple and it is coming, and it is going to give everyone a bigger fright than a tax hike.
Elektra said:
on Tuesday 18-Feb-14 09:01 AM
So difficult to stay positive when there is ONLY negative surrounding our every move.
Liesl said:
on Tuesday 18-Feb-14 08:51 AM
News like this is very debilitating
Alexis said:
on Tuesday 18-Feb-14 08:38 AM
All i can say is that i am so tired of this. The government just takes takes and takes an d gives us absolutely nothing back, all they do is use the money on themselves.
Helen said:
on Tuesday 18-Feb-14 08:22 AM
The government already has taken from us so much tax, the question is where is tax go? In which sector of South African economy this tax used? Living in South Africa today for a family with two kids is extremely expensive. Where you have to spend on medical care 10% from your salary, on school fees for both kids 15-20% and this social needs used to be for free. Let's look at some overseas countries, even as example Russia or any other European country - just married young couple gets grant from the government for the starting the life together; then when child born, government again pays out amount for all child's needs and then other 6-12 months the government pays out the reasonable amount to cover young family costs - what is the reason for government to look after families? Only one reason I see - this young family will work hard for this country and make sure that the kids will become a proud citizens. Can we really be proud of South Africa? Very good question, besides that the weather is very good here.......
Melissa said:
on Tuesday 18-Feb-14 08:14 AM
The government will still take money even though there is no more to take. These high prices that continues to increase will not only affect the economy but the children and the future of this country. The government will have to put a stop to this, before its to late.
david said:
on Tuesday 18-Feb-14 07:49 AM
and, all the while, our politicians fiddle while rome burns... the faster we are rid of the useless government we now have the better. unfortunately, i do not see that happening though. if you are living on government grants, the last thing you care about it interest rates. the country needs jobs. the tax base is shrinking everyday, and the government spending more and more. what will they do when we are all unemployed???
Lourien said:
on Tuesday 18-Feb-14 07:49 AM
The government is spending all the money coming in and still hold out their hands for more and more money, this causes a problem especially for families even couples with out children are being affected. I have no idea how parents with children actually cope with the high taxes, increasing school fees and fuel, not even mentioning how the e-toll affecting them at every corner.
Jade said:
on Tuesday 18-Feb-14 07:38 AM
This is infuriating,perhaps the government should have really contemplated the need to increase individual tax rates before implementing e-tolls. The people are over-burdened!
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
