Budget 2022: A politically-safe step in the right direction

THE main body of the 2022 Budget is much the same as in previous years: Steady as she goes, emphasis on upskilling, training, and opening our borders to provide fresh access to foreign talent, more inclusive green society, etc. No real evidence of a country emerging from an economic crisis.

The later parts however, provided some ripples of interest. The long-awaited Goods and Services Tax (GST) increase will now happen in 2 stages rather than the generally expected one-off on Jul 1, 2022. The first increase from 7 per cent to 8 per cent will take place on Jan 1, 2023 - which will coincide with the introduction of GST on low-value items and remote services - followed by another one-point hike to 9 per cent on Jan 1, 2024. Christmas 2022 promises to be a boon for tax consultants.

The rate of change takes into account the impact on consumers, certain industries - F&B and tourism in particular - and the inflationary impact. Businesses in general will either have to like it or lump it, as far as dealing with two sets of transitional measures is concerned.