{"id":62488,"date":"2024-03-09T15:52:01","date_gmt":"2024-03-09T15:52:01","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table"},"modified":"2024-03-09T16:09:19","modified_gmt":"2024-03-09T16:09:19","slug":"finance-minister-says-vat-hike-still-on-the-table","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table","title":{"rendered":"Finance Minister says VAT hike still on the table"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Finance Minister Godongwana said that, even though he did not raise taxes in the 2024 Budget, value-added tax (VAT) hikes are not off the table.<\/p>\n

Gorgonwana tabled the 2024 Budget on 21 February, where many South Africans were relieved to hear that the government did not increase any major taxes.<\/p>\n

After personal and corporate income tax, VAT is the government\u2019s largest source of revenue. VAT is expected to bring in R476.7 billion in taxes in the 2024\/25 financial year.<\/p>\n

The VAT rate has only been raised once in democratic South Africa, when it was hiked from 14% to 15% in 2018.<\/p>\n

However, many people believed the Treasury would turn to VAT hikes to raise additional revenue in 2024, as the government reported a massive R347 billion deficit for 2023.<\/p>\n

Godongwana signalled in November last year that he would announce new tax measures to raise an additional R15 billion in his February budget.<\/p>\n

Therefore, before the 2024 Budget, many experts believed these new tax measures would be VAT increases.<\/p>\n

\u201cWe don\u2019t have scope from a corporate income tax point of view,\u201d Kyle Mandy, PwC South Africa tax policy leader, said. \u201cNor do we have scope from a personal income tax perspective.\u201d<\/p>\n

Mandy said that to raise the R15 billion, the Treasury would have to increase VAT by 0.5% to 15.5%. She added that personal income tax has largely been exhausted, and corporate taxes have been a \u201cvolatile\u201d and \u201cunreliable\u201d revenue source in recent years.<\/p>\n

However, the Treasury ultimately decided not to adjust income tax brackets for inflation and dipped into the Reserve Bank\u2019s Gold and Foreign Exchange Contingency Reserve Account.<\/p>\n

This will give the Treasure more income without raising taxes, which could have risked increased non-compliance from South Africa\u2019s already small tax base.<\/p>\n

However, Godongwana told SABC News that raising VAT is not off the table.<\/p>\n

\u201cIt\u2019s too early to make that judgment call because I\u2019ve just tabled the Budget two weeks ago, and I did not increase VAT \u2013 but I\u2019m not saying it\u2019s not on the table,\u201d he said.<\/p>\n

The minister said it depends on the nature of demands on the fiscus and the availability of resources.<\/p>\n

\u201cFor instance, the SARS Commissioner informed me that if we give him more resources, he would get us more revenue by effective compliance,\u201d he said. \u201cIt may well be that if we achieve that objective, there\u2019s no need for tax increases.\u201d<\/p>\n

However, he said if major changes like a basic income grant or National Health Insurance are implemented, tax hikes may be necessary to fund them.<\/p>\n

\u201cLet\u2019s assume, for instance, that the government wants to implement a basic income grant in 2025. That basic income grant must be funded one way or the other,\u201d he explained.<\/p>\n

\u201cSo, I\u2019m not ruling that out, but it\u2019s not on my radar screen for now.\u201d<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Finance Minister Godongwana said that, even though he did not raise taxes in the 2024 Budget, value-added tax (VAT) hikes are not off the table. Gorgonwana tabled the 2024 Budget on 21 February, where many South Africans were relieved to hear that the government did not increase any major taxes. After personal […]<\/p>\n","protected":false},"author":84,"featured_media":62486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7],"tags":[274,315,275],"class_list":["post-62488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nFinance Minister says VAT hike still on the table - South Africa<\/title>\n<meta name=\"description\" content=\"Finance Minister Godongwana said that, even though he did not raise taxes in the 2024 Budget, value-added tax (VAT) hike ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finance Minister says VAT hike still on the table\" \/>\n<meta property=\"og:description\" content=\"Finance Minister Godongwana said that, even though he did not raise taxes in the 2024 Budget, value-added tax (VAT) hike ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-09T15:52:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-09T16:09:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/03\/sm_1709987855.970642.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Finance Minister says VAT hike still on the table\",\"datePublished\":\"2024-03-09T15:52:01+00:00\",\"dateModified\":\"2024-03-09T16:09:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\"},\"wordCount\":488,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/03\/sm_1709987855.970642.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/finance-minister-says-vat-hike-still-on-the-table\",\"name\":\"Finance Minister says VAT hike still on the table - 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