Cut the fat, Enoch! – Little chance of VAT hike after budget chaos
Only options: slash state spending and grow the economy
23 February 2025 - 08:44
The theatrics that led to the postponement of this week’s budget speech have killed any chance of VAT changes being included in the budget due for retabling on March 12, meaning the GNU may have to consider huge spending cuts to balance the books.
Political parties represented in the GNU and economists are in agreement that the rejection of the two-percentage-point hike in VAT means a range of haircuts will have to be introduced to make up for the R58bn revenue shortfall, which threatens government spending on education, health, policing and other critical functions. ..
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