Budget statement lands with three surprises

The finance minister presented the budget to Parliament on Thursday afternoon, and three measures were not in any of the briefings that circulated beforehand.

The first is a smaller fuel levy than expected. The per litre charge rises by two cents rather than the five that importers had been planning for, which the ministry says reflects lower landed costs over the last quarter.

The second is a cap on school fee increases for government schools, set at the rate of inflation for the coming year. Schools that want to go above the cap will need approval from the provincial education office.

The levy nobody expected

The third surprise is a new levy on short term rental income, collected through the platforms that list the properties. The ministry expects it to raise a modest sum in its first year and says the money is ring fenced for road maintenance in tourist areas.

Business groups welcomed the fuel decision and asked for more detail on how the rental levy will be collected. Parents associations said the fee cap was overdue but warned that some schools already charge extra through building funds and uniform suppliers.

Parliament begins its line by line debate of the budget next week.