There is a chance that the increase of VAT from 15% to 16% will be rejected when the budget is voted on in parliament.
Finance Minister Enoch Godongwana’s value-added tax (VAT) hike of 1% over two years is likely to face resistance from opposition parties within the government of national unity (GNU).
The VAT hike still needs to be passed by the National Assembly and the National Council of Provinces.
Many within the opposition ranks have criticised the government for taxing citizens without tightening its own belts or clamping down on corruption enough.
ALSO READ: Political infighting threatens to derail SA’s budget over VAT hike
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