Finance Minister Godongwana. (Photo: Mlungisi Louw / high pictures)
Finance Minister Enoch Godongwana said that the treasury was every way to get more income before the increase in the route of one smaller than the proposed last month.
“We have thoroughly studied alternatives to increase VAT rate,” he said.
“Corporate tax collections have decreased in the past few years, a sign of falling profits and one trading environment in a trading environment with a logistics limit and growing electric costs.”
There was also higher than most of the majority of the peers of South African’s corporate income tax collections.
“On the other hand, increase to the degree of personal income tax will reduce the incentives for taxpayers to work and save.”
This was not only possible because South Africa was highest in the highest level of GDP for the best personal income tax rate and individual income tax.
After the discussion, after the discussion, Godongwana decided to increase the same amount of VAT to 0.5% in the near future year and next year. In 2026, it will bring VAT to 16%.
The minor increase was an additional R28 billion in February, an oath in February, also said that the two percent of the plans to refuse the Oath, he said.
The concession will see that the minister first stabilized the debt in the new fiscal year in the new fiscal year.
A few minutes before the start of talking to Godongwana, John Steenhuisen, the leader of the Democratic Union (also) rejected the party’s reduction and will not support the budget.
The party claimed that there is no income crisis, but not only inefficient spending, and in the three decades in the course of the three-year economics.
Godongwana insisted that he needed additional funds to deal with the passenger railway, and extended the social relief of the district grant for another year without borrowing.
“Additional debt was not possible,” said MPs on Wednesday.
“The amount was just too big. The value of the debt would be inaccessible. Sub-investment loan rating will give you this level to a borrower and put us at risk.”
In recent weeks, economists and trade union continued to admit that they have repeatedly celebrated the repeated celebrations: “VAT is a tax that affects everyone.”
However, in a media before speech, the minister, the minister, the minister’s decisive opposition in the Coalition was not only a try to protect the poor in the health, education and confisciation legislation.
He said that the smaller growth of MPs will leave the treasure that could not damage the poor if the sensitive sectors of the sensitive sectors of the population’s sensitive sectors were able to damage the poor.
“To grow marginalized in VAT, its distribution effects and effects are caused by caution. The growth is the most effective way to create more expenditure cutting and extend the cost of spending.”
The Minister also decided not to regulate personal income tax brackets for inflation planned. The fuel harvest will remain unchanged, and the so-called bail will stand upright.
He said that the revised tax offers will receive additional income from R14.5 billion Rural in 2026-27.
