We are sorry that our South African counterparts seem to have a prospect of a reduction in VAT. Hopes were dispersed during a parliamentary hearing on Tuesday, when the Finance Committee said they had no choice but to "reluctantly accept" the situation.
The group gathered and asked for the rejection of the increase that was introduced from April 1 this year. Value added tax has risen from 14% to 15%, which has affected everything from food prices to fuel costs – something that is still in our hands.
When do we find a reduction in VAT in South Africa?
But nothing would be so lucky for the ordinary citizen, and the board decided to support the changes promoted by Cyril Ramaphos. They also said that this fiscal policy should be revised in April 2021, which means that we will first see a three-year decline:
"The Committee believes that this increase must be reluctantly accepted but should be reviewed at the end of the third year of its implementation, on 1 April 2021, the following assess the impact of the revenue collection and the poor. "
Yunus Carrim is chairman of the Financial Committee. He went on to explain the logic that led to an increase in VAT, and said the economic forecast for South Africa had fallen after price increases:
"The impact of the introduction of the medium-term budgetary policy statement (MTBPS), which estimated economic growth at 0.7%, has become more difficult. The MTBPS also unexpectedly predicts a revenue fall of 27.4 billion R27 in this financial year, VAT debts of $ 20 billion that were detained. "
"Parliament and the government must ensure more revenue than ever to achieve greater revenue, thanks to the significant strengthening of the South African tax authorities' capacity to increase revenues, drastically reduce uneconomic spending, and more effectively fight the illicit economy and corruption."
The Committee concluded its meetings by suggesting steps the Treasury could take to relieve the burden on the poorest citizens of the SA. They believe that the allocation of available water and electricity must be extended to demanding households and that pupils have to pay less for school uniforms than local companies.