Tax & Spend
South Africa May Need to Hike Value-Added Tax in Next Budget, PwC Says
- Treasury eyes additional tax measures of $783 million
- VAT hike can be justified by extension of social relief grant
Enoch Godongwana
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
South Africa’s National Treasury may have to hike value-added tax on some goods and services to bring in new revenues, accounting firm PwC said.
Finance Minister Enoch Godongwana in November signaled that he would announce new tax measures to raise an additional 15 billion rand ($783 million) in his Feb. 21 budget. The country is facing spiraling debt and growing spending needs that may be exacerbated by elections in which the ruling African National Congress risks losing its national majority for the first time since it took power in 1994.