Vat Hike Reversal Relief For Business: Cape Chamber

The Cape Chamber of Commerce and Industry CCAI says the decision not to increase Value Added Tax VAT by 0.5 point is a relief not only for the poor but also for business.

VAT will remain at 15.

CCAI says government will have to curb its expenditure to make-up for the deficit in the medium term.

Its suggested reducing the size of the Cabinet and spending on public service salaries will help make up the deficit.

The Chambers Deputy President Derryn Brigg says it is a positive step for South Africas economy and a huge relief for already over-burdened consumers.