Godongwana to reverse decision to hike VAT
With a week left until the VAT increase would have come into effect, Godongwana seems to have found ways to raise money without increasing taxes.
The minister has written to the Speaker of the National Assembly, indicating that he will be withdrawing the Appropriation and Division of Revenue bills.
This will allow Parliament to adjust the expenditure figures to accommodate the shortfall that will come from not increasing VAT.
The minister said that revised versions of both bills would be presented to Parliament within the next few weeks.
Godongwana said the decision to not increase VAT came after consultations with various political parties and recommendations from the parliamentary committees.
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