SA warns of possible tax hikes

South Africa's government may consider raising taxes if the economy does not recover enough to boost tax revenue, Finance Minister Pravin Gordhan said on Wednesday.

"At that stage (February's budget) we didn't see any need to increase taxes, but if the economic and revenue position does not improve, we will have to look at that question again," he told parliament's finance committee.

An economic downturn last year hit government revenue, worsening the budget deficit, although a bigger-than-expected tax take in the 2009/10 financial year put the shortfall at 6.8 percent of GDP, less than the forecast 7.3 percent. South Africa kept spending up despite last year's recession to help the economy recover but has vowed to gradually cut the deficit and reduce debt.Lesetja Kganyago, the director-general of the National Treasury, said the budget deficit was expected to remain relatively large for the next three years due to a still weak global economy that may also curb local growth.

Editor's Comment
Dear gov't, doctors: Ntwakgolo ke ya molomo

With both sides entrenched in legal battles and public spats, the risk to public health, trust in institutions, and the welfare of doctors grows by the day. It's time for cooler heads to prevail. The government and BDU must return to the negotiating table, not with threats, but with a shared commitment to resolve this crisis fairly and urgently.At the heart of this dispute lies a simple truth: doctors aren't just employees but guardians...

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