Ramaphosa says it's unlikely treasury will find way to scrap VAT increase

JOHANNESBURG - President Cyril Ramaphosa said it's unlikely Treasury will find a way to scrap the Value-Added Tax (VAT) increase and raise money another way.

Earlier on Sunday, ActionSA said it had tabled a plan to the finance minister that would prevent the VAT hike while still raising the money required to fund government programmes.

The budget that was passed on Wednesday included a non-binding recommendation for Treasury to find other ways of raising the R28 billion it is estimating it will get once the VAT increase kicks in on 1 May.

Speaking on the sidelines of an African National Congress (ANC) event in Johannesburg on Sunday, Ramaphosa said Treasury is currently seized with finding alternatives to the VAT increase.

“In the end, we will look at ways and means of seeing whether that is possible or not. From current examination, Treasury has said having looked at various areas where they can look, it doesn’t seem to be so. However, the proposals from the various parties are being taken very seriously.”