By Reuters
South Africa’s National Treasury is looking at alternative revenue-raising options to a value-added tax increase, but the chances of avoiding it are low, President Cyril Ramaphosa said on Sunday.
The second biggest party in the ruling coalition, the pro-business Democratic Alliance (DA), on Wednesday rejected a proposal in the budget to raise VAT by 1 percentage point spread over two years, arguing it would hit the poorest hard.
“We will look at all ways and means of seeing whether that is possible or not,” Ramaphosa said on X. “From current examination, Treasury has said — having looked at various areas where they can look, it doesn’t seem to be so.
“That process will be engaged in for the next 30 days, and it’s only thereafter that the report will be available and will be presented, that we will be able to take the matter forward.”
The DA filed a court case on Thursday
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