- South Africa’s cabinet will approve a value-added tax increase.
- The Treasury will likely increase the VAT by 0.5 percentage points.
- The increase is conditional on the Treasury addressing issues like fixing ports and reviewing spending.
- The Treasury may also consider raising taxes on alcohol and fuel.
- The smaller VAT increase will require cuts to spending plans.
- The cabinet had to negotiate a deal due to opposition to the initial VAT hike proposal.
- The budget speech was postponed due to opposition to the VAT hike.
- The Democratic Alliance and some members of the ANC opposed the initial VAT hike.
- The budget review process should include a growth ignition expenditure framework.
Source: businesstech.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
