Godongwana's Budget expected to 'put some money back into people's pockets'

CAPE TOWN - Finance Minister Enoch Godongwana is set to deliver his first national Budget Speech on Wednesday and there could be good news for taxpayers.

Parliament is preparing the Good Hope Chamber, in the parliamentary precinct, for the event, which is due to start at 2pm.

Economists are expecting a low-key budget that sticks to the line that Godongwana spelled out in his Medium-Term Budget Policy Statement in November.

While no fireworks are expected, higher levies on fuel, tobacco and alcohol could still burn a hole in people’s pockets.

The boom in commodities won’t last forever, but it’s helped swell state coffers and that’s good news for South African taxpayers.

Allan Gray’s Thalia Pertousis: "Government revenue is likely to overshoot expectations. We don’t know by how much, but maybe by as much as R80 billion for the year."

That means less pressure to hike taxes.

Investec’s chief economist, Annabel Bishop: "There’s little need for tax increases, at the moment, because we have had such substantial revenue overruns, and that’s obviously from the commodity boom that came through last year but also coming through this year still, which means our 21/22 tax year is likely to see revenue over-budget."

ENS Africa tax expert, Charles de Wet, expects people will pay slightly less tax, with lower-income earners set to benefit more than richer people.

“He’s going to put some money back into people’s pockets," De Wet said.