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/ 25 February 2016
Finance Minister Pravin Gordhan has staved off an increase in value-added tax – for now.
Finance Minister Pravin Gordhan has revealed plans to introduce a tax on sugar-sweetened beverages, similar to the sin taxes on alcohol and tobacco.
The finance minister will have to slash spending and possibly raise taxes in this week’s budget.
Jacob Zuma has done an about-turn and will implement the recommendations of a 2013 report on management of floundering state-owned entities.
Prescribed minimum benefits dominated the public hearings at the start of the Competition Commission’s inquiry into the private healthcare market.
Analysts say Zuma’s speech failed to show meaningful change in policy direction and is unlikely to stand in the way of a credit rating downgrade.
The party has realised it cannot continue to bail out Eskom and the state’s wage bill is too high.
The break-up of industry cartels has had a profound impact on individuals and industries – but government needs to look outside the "fiscal space".
But there is increasing alarm about the state’s inconsistent application of its policies and the subsequent effects on investor confidence.
The tax on sugar-sweetened beverages is not a silver bullet but it could cut the health bill and add to government coffers.