BUSINESS NEWS - Finance Minister Enoch Godongwana has confirmed that a new national budget will be presented in Parliament on 21 May.
The decision to introduce a revised budget comes in the wake of government’s move to abandon the plan by the National Treasury to increase the value-added tax (VAT).
The original proposal aimed to raise VAT by 0.5% starting on 1 May 2025, followed by an additional 0.5% hike in the 2026/2027 financial year.
The plan was intended to bolster government revenue, but it faced significant public and political resistance due to concerns over the potential impact on the cost of living and economic inequality.
With the VAT hike now officially scrapped, attention has turned to how the government will address its revenue shortfalls and fund key public services.
Article: Caxton publication, The Citizen
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