Economists believe a tax hike is on the cards. This comes after government hinted the need to increase taxes to help foot the bill for the Covid-19 vaccines.

Economist at Econometrix Azar Jammine says there is some rationale in implementing higher taxes for some groups.

"Naturally there is potential for tax increases but obviously these will not be announced in the SONA. The only thing that might be provided is a vague indication of whether or not we can expect an increase in the forthcoming budget.

"There is a rationale for introducing tax increases and to penalise higher-income groups. Higher-income groups suffered a lot less than lower-income groups in the Covid crisis."

Jacaranda FM