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Godongwana reveals the budget item causing VAT hike chaos in South Africa

Finance Minister Enoch Godongwana is sticking to his guns about hiking VAT in South Africa, even if it's at a lower rate than before.
In a recent statement, South African Finance Minister Enoch Godongwana highlighted the significant financial strain caused by the Social Relief of Distress (SRD) grant, which has been a major factor in discussions about potential VAT increases. The SRD grant, introduced to help alleviate poverty during the economic downturn caused by the Covid-19 pandemic, has ballooned in cost, now amounting to R34 billion annually. This expense has led to considerations of raising VAT to fund the grant's extension beyond its current term, which ends in March 2024. Godongwana emphasized that while the grant has been crucial for many, its funding has put considerable pressure on the national budget, prompting debates on fiscal policy adjustments, including the possibility of a VAT hike, to ensure its sustainability.

Read the Full BusinessTech Article at:
[ https://businesstech.co.za/news/government/815914/godongwana-names-the-budget-item-causing-vat-hike-chaos-in-south-africa/ ]