A hike in VAT may be one of the few options finance minister Tito Mboweni has to lift revenue when he presents the budget at the end of this month. Whether it's a VAT hike or a payroll tax, analysts have little doubt he will be digging deeper into consumers' pockets.

As unpopular as a hike in VAT will be, especially given the impact on low-income consumers and that the government has consistently broken its pledges to trim spending, such an increase could inject at least R15bn of additional revenue into the state's coffers, tax experts said this week.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now