Neelam Rahim | neelam@radioislam.co.za

2-minute read
25 February 2023 | 16:09 CAT

Finance Misister Enogh Godongwana Photo: News24

The government is introducing two tax measures to households and businesses so that they can invest in renewable energy and limit load shedding. Businesses can claim as much as 125% tax deductions on any renewable energy projects, with households able to claim back 25% on solar panels.

Reacting to the Minister’s 2023 budget, chief economist at Efficient Group, Dawie Roodt, said he did not think the Minister’s economic growth estimate would be achievable.
South African taxpayers can take some relief from the budget to ease the difficulties, especially Income Tax, with no increase in fuel levy nor a sugar tax hike. Minor adjustments have been made to some taxes in line with inflation.

According to Roodt, income taxes will be better, having reduced in line with inflation. There will be a price rise in purchasing cigarettes and alcohol but in line with inflation.

Grant recipients will also receive an increase in the amount received. However, the increase will be below, not compensate for the inflation rate.

Meanwhile, South Africa is a country in deep debt whilst spending a lot of money in combat against corruption, raising many questions from taxpayers.

Roodt said this regard had remained the same.
‘’Judging from the South African Reserve Bank’s leading indicator that predicts what economic growth will likely look like over the next few quarters, South Africa is probably in a recession. He also believes the Minister had inside info that South Africa will be greylisted,” he says.

Listen to the interview on Your World Today with Presenter Annisah Essack and guest Dawie Roodt.