Finance Minister Tito Mboweni announced an increase and a possible a new tax on petrol and diesel but the biggest surprise was on the increase on “sin taxes” but that was short lived as he has informed the attentive audience that the government hopes to collect R15 billion more from personal income tax. For the first time since 1990, there will no increase on income tax.

The minister contended that the 2019 budget speech was one of the most difficult in the history of South Africa. He went on to blame the shortfall in revenue this year due to Eskom’s constantly growing problems. He said that the Reserve Bank will loan Eskom the money it will see that the money is repaid back as this is not the government’s debts.

A carbon fuel levy of nine cents on petrol and 10 cents on diesel will be introduced increasing the fuel levies by 29 cents per litre for petrol and 30 cents per litre for diesel.
Social media platforms were abuzz when the increase in sugar and “sin taxes” was announced as many citizens are already cashed strapped and little luxuries will now burn larger holes in their pockets.

The Minster mentioned the introduction of a “Vaping tax but no further” details given.

Many opposition party members were not impressed with the outcome of the budget speech, many South Africans are questioning whether Eskom will be able to keep the lights on.

Minister Mboweni has said that there will be a contingency place in terms of funding, however, all SOEs needed to become self-sufficient and it will take courage and determination to ensure it gets to that point until such time loans were set aside to ensure that there can be infrastructure upgrades over the next year.

Mumtaz Moosa Saley
20022019