Vat Increase Needed To Improve Frontline Services: Godongwana

Finance Minister Enoch Godongwana says increases may not be the ideal measure but it is an attempt to bring much needed improvement in the delivery of frontline services like health and education.

Treasury appeared before the four finance committees of Parliament where MPs could analyse this weeks budget.

On Wednesday, Godongwana announced a 0.5 percentage point increase in VAT .

This is after the budget tabling was postponed last month, due to disagreements within the Government of National Unity partners over a proposed 2 VAT increase.

Godongwana told MPs that the VAT increase is necessitated by the need to improve social services, such as health for the poor.