Godongwana says VAT increase carried political risk
Finance minister says raising VAT was the best option in the face of very high debt to GDP and the erosion of front-line services
19 February 2025 - 14:13
UPDATED 20 February 2025 - 08:12
The National Treasury took the politically explosive decision to increase the rate of VAT by two percentage points to 17% from April 1, which was rejected by the members of the government of national unity (GNU).
Finance minister Enoch Godongwana conceded in a media briefing ahead of the his postponed budget speech in the National Assembly the move carried a political risk — political parties would not want to lose support — and this would have to be managed. ..
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