Tax & Spend
South Africa’s Cabinet Backs a Smaller Value-Added Tax Hike
- National Treasury working on a 0.5 percentage point increase
- Finance Minister Enoch Godongwana to table budget on March 12
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South Africa’s cabinet will back a value-added tax increase in exchange for a commitment from the National Treasury to review spending and fast-track economic growth, according to people familiar with the discussions.
The Treasury is likely to opt for a smaller 0.5 percentage point hike in a rescheduled budget to be presented on Wednesday, compared with its initially proposed 2 percentage-point increase, according to two of the people, who asked not to be identified as the information isn’t public.