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
