ANC calls for balanced approach to budget amid VAT hike

By Simon Nare

The ANC has urged for cool heads in addressing the intricate and sensitive aspects of Finance Minister Enoch Godongwana’s proposed budget, which includes a 0.5% percentage point increase in Value Added Tax aimed at addressing the tax deficit.

Parks Tau, a member of the Economic Transformation Committee and the Trade and Industry Minister, told journalists during a media briefing at Birchwood Hotel in Boksburg, just outside Johannesburg, that navigating the complexities of the budget is crucial.

Tau said that while the government must review its expenditure programs, it also needs to determine how to generate the necessary revenue to fund them.

“Parliament is considering the proposals with regards to the revenue proposals that would include the 0.5% VAT increase. This report will be provided to parliament considers the report and the way forward,” said Tau.

“But equally, when addressing revenue, cutting on the revenue side impacts expenditure,