SA on Tax Increase by Minister Mboweni
South Africa is one of the well known borrowers of money in the continent. The country has been in debt before the pendemic upon us.
We have been paying with our tax money and sustaining the government at the same time, I was never enough as our debt kept on increasing.
As we stand today, the country of South Africa owes more than R3 billion to the Chinese government and the World bank.
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Minister Tito Mboweni spoke on the financial crisis facing our economy and he said that unless we increase taxis, we won't be able to cover the debt anytime soon.
From the office of the finance minister, it was projected that above 80% of our annual GDP in South Africa will be used to pay debts, which leaves the country to run under only 20% of its own GDP.
A post from business tach stated the following:
Mboweni said that early projections show that gross national debt will be close to R4 trillion, or 81.8% of GDP by the end of this fiscal year. This is compared to an estimate of R3.56 trillion or 65.6% of GDP projected in February.
Posted by George Robert