Mbalula: ANC didn't support corporate tax hike in fear of potential job losses

JOHANNESBURG - The African National Congress (ANC) said it did not support an increase on corporate tax in fear of potential job losses.

On Thursday, the party held a media briefing at Luthuli House in Johannesburg, reflecting on the proposed national budget.

The budget, presented on Wednesday to Parliament, includes a one percentage point increase to value-added tax over the next two financial years.

Prior to the Budget Speech, opposition parties said government should raise the corporate tax instead of value-added tax, which negatively impacts poor people the most.

ANC Secretary-General Fikile Mbalula said that the impact of the VAT increase on the poor had been offset by the addition of more zero-rated items.

Mbalula said increasing corporate tax was not economically viable.

"On the corporate tax which is already high, it is clear if you were to increase, you are basically taking people out of jobs over a period of time. What is important about this budget is balancing the act, it's fundamentally about preserving and creating jobs and making it a point the economy grows."

Mbalula said a wealth tax was also out of the question as the country’s top earners were already paying high taxes.