VAT hike to 16% at the end of February is possible, even likely
South Africans should brace themselves for a possible hike in the VAT rate when Finance Minister Tito Mboweni presents the 2020/2021 Budget Speech at the end of the month.
According to PwC, hiking VAT by one basis point to 16% will inject R25 billion of extra revenue into the Government’s empty purse.
On the basis that an increase in the rate of VAT will have the least harmful effect on the overall economy and its ability to raise substantial amounts of revenue with relatively small tax increases, it should be the preferred instrument for raising additional tax revenues.PwC
There has been talking that the only effective lever left to pull could be to raise VAT by one percentage point to 16%, which would inject between R20 billion and R35 billion in revenue. Although it would be a particularly unpopular move politically, it is increasingly possible.Mike van der Westhuizen, Portfolio Manager - Citadel
For more detail, read "VAT hike may be only option".
The Motsepe family announced details of the donation on Saturday. Several hundred million rand will be available 'immediately'.Read More
The ratings agency cited weak growth and a decline in fiscal strength as its main reasons for the downgrade.Read More
Managing Director at Banking Association of South Africa Cas Coovadia says some branches will be open to process Sassa payments.Read More
Faith Popcorn is a US futurist who coined the term 'cocooning' - something we are all ordered to do now.Read More
In an unprecedented step, the Reserve Bank is buying government bonds.Read More
Edcon CEO Grant Pattison broke down in tears today, telling suppliers the company only has sufficient liquidity to pay salaries.Read More
Statistics South Africa warns the lockdown will impact on the collection and publication of official statistics.Read More
"We’ve seen an upsurge of complaints in the past two days," says the Competition Commission’s Thembinkosi Bonakele.Read More
"If companies can't pay workers, they must use UIF. Don’t say to people it is unpaid leave," says the Department of Labour.Read More
The South African government has released the final lockdown regulations after a series of ministerial briefings this week.Read More