# Tito may be lining up SA for a large tax levy next year

- Link: https://dearsouthafrica.co.za/2019/11/01/tito-may-be-lining-up-sa-for-a-large-tax-levy-next-year/
- Published: 2019-11-01T09:13:07+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2019/11/20191225/Screenshot-
2019-11-01T091033.472.png "Screenshot - 2019-11-01T091033.472")

Some years back when the US was fretting about high Government debt, a survey was
conducted among citizens to understand how they would prefer to address the problem.
By far the majority said they’d prefer a large one-off levy rather than the drip
torture of higher taxes over many years.

That shouldn’t be a surprise. Most of us have learned to first tackle the least 
enjoyable item on our To-Do list. Similarly, when restructuring an underperforming
businesses, savvy managers know it’s best to take the biggest hits up front. After
clearing the decks they get on to build a better future.

After paying close attention to yesterday’s MTBPS, I got the feeling that finance
minister Tito Mboweni might be lining us up for similar treatment in February next
year. Circumstances are so dire, he pointed out, that big and tough decisions need
to be taken. So he urged us to start talking about them.

With the double whammy of a R53bn revenue shortfall and R23bn in overspending, higher
taxes are a certainty in February’s Budget Speech. Nobody likes paying more tax.
But if we have to, it’s best to get it over with soonest. Collectives have long 
used large one-off levies when needing to bring the finances into order. It’s a 
principle which should also works with countries

[Article](https://www.biznews.com/undictated/2019/10/31/tito-lining-sa-large-tax-levy?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook#Echobox=1572499705)
by BizNews