Godongwana To Discuss Vat Increase With Gnu Partners

Finance Minister Enoch Godongwana has announced plans to meet with various political parties in the Government of National Unity GNU to address the political risks associated with a proposed two percentage point increase in Value-Added Tax VAT.

Speaking to the media in Parliament yesterday, Godongwana stated that if the government does not implement the increase, it will have to find alternative revenue sources.

The proposed VAT hike aims to support public sector wage funding and address spending pressures.

"This is the Government of National Unity. We must live with the reality that people may go to the extent of negotiating items the Bill allows them to do. That discussion may impact on the budget as it stands, and its not going to be business as usual where we can go in and be assured that what weve tabled will be the final outcome," said Godongwana.

He emphasized that the final budget outcome could change based on negotiations with political parties.