The mid-term budget debate is approaching, and South Africa’s economy is junk status, plus possible further downgrading by rating agencies due to South Africa not being able to repay its debts could be the final straw.
Meanwhile, the collection of tax revenue by the South African Revenue Service (SARS) has fallen by almost R37 billion, and no further measures have been put in place to restore the deficits.
Economists predict a further R40 billion deficit for the 2016/17 fiscal year, and this means that the “new” finance minister will have to somehow pull a rabbit out of the hat. The unlikely event may be that VAT will be increased by up to 2%.
However, the trade unions have long ago stated that if VAT increases, there will be “war.”
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
