Economist: Tax relaxation measures not enough
Economist Dawie Roodt says the exceptional tax relaxation measures announced by the Finance Minister won't be enough to support the economy.
The measures include a four-month R500 tax subsidy to employees in the private sector who earn R6 500 or less. SARS will now pay out tax incentives monthly.
Small and medium businesses with a turnover of R50 million can delay 20% of their employees' tax liabilities.
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Roodt says the country's economy needs a financial cash injection in order to recover from ICU.
"What we actually need is a R200 or R300 billion stimulus package, and we just don't have the money for that. We don't have the money because of previous mismanagement of the fiscal accounts and of the state-owned enterprises."
"If fact, the slow down in economic activity will lead to even bigger fiscal deficits and a huge increase in the fiscal debt levels," he said.
