The government would have to increase the VAT rate by at least 5% to reduce the debt burden in the provincial roads maintenance account, which is now six times higher than the province’s expenditure.
Reports indicate that the South African roads, which are in a dire state, are now desperately in need of attention. There is already a backlog of R197 billion from 2013 which has now grown to more than R400 billion.
Experts say that the problem can be solved by increasing VAT to 19% or 20%, but of course the problem may just be bigger with a lot of money in corrupt hands.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
