Infrastructure development, sanitary towels and sin tax: 5 key quotes from Mboweni’s budget speech

 

Finance minister Tito Mboweni said the government has set aside R791.2bn for infrastructure development and has already partnered with the private sector and other role players for its rollout.
Finance minister Tito Mboweni says there will not be more cash for the extended state capture inquiry.
Image: Esa ALexander/Sunday Times

The minister implored communities to avoid destroying infrastructure during protests, saying this sets the government back in its endeavours.

“We can’t do this any more, we have to introduce a new mentality of asset management. The communities must own these assets and protect and defend them,” he said.

Here are five telling quotes from his address:

Corporate income tax

“The corporate income tax rate will be lowered to 27% for companies with years of assessment commencing after April 1 2022. This will be done alongside a broadening of a corporate income tax base by limiting interest deductions and assessing losses.”

Infrastructure development

“The government is committed to R791.2bn in infrastructure development. We are already partnering with the private sector and other players to roll out infrastructure through the initiative such as the blended finance system. However, all this infrastructure will be wasted if the end-user does not pay a cost-reflective tariff for usage.”

Fuel levies 

“Fuel levies will be increased by 27% per litre comprising 15% per litre for the general fuel levy and 11% per litre for the road accident fund levy and 1c per litre for the carbon fuel levy.”

“It is clear that excessive alcohol consumption can lead to negative social and health outcomes. Consumers do react to price increases, and higher prices should lead to lower consumption of alcohol products with positive spin-offs.”

Social Development 

“Provinces will receive R3.5bn from the department of social development to improve access to early childhood development services. R678m is earmarked for provincial departments of social development and basic education to continue rolling out free sanitary towels for learners from low income households.”

TimesLIVE (TMG Digital)

Cebelihle Bhengu

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