The national Budget speech was delayed due to a disagreement over a proposed 2% VAT increase.
Leaked copies of Finance Minister Enoch Godongwana’s Budget Speech show that Treasury had proposed a 2% increase on the Value Added Tax, in order to fund wage increases for public servants, retain teachers, doctors and also to expand the government’s early childhood development opportunities.
A 2% increase on the VAT would have raised the VAT to 17%, however, the proposal was widely rejected during an emergency Cabinet meeting called ahead of the Budget Speech on Wednesday.
Source: foodformzansi
Latest Posts in "South Africa"
- EFF Applauds Court Ruling Affirming Only Parliament Can Change South Africa’s VAT Rate
- Court Rules Finance Minister Cannot Unilaterally Raise VAT; DA, EFF Hail Decision
- Court Orders Parliament to Limit Finance Minister’s Power Over VAT Increases
- South African Court Rules VAT Changes Require Parliamentary Approval, Not Ministerial Decree
- High Court Rules Finance Minister Cannot Unilaterally Raise VAT Rate Without Parliamentary Approval
