An increase in Value Added Tax was necessary to prevent government from drastically cutting service delivery.
This is according to African National Congress (ANC) Member of Parliament and member of the Appropriations Committee, Ndabakayise Gcwabaza.
He was opening the debate on the Division of Revenue Bill in the National Assembly.
Gcwabaza says VAT can however be reviewed.
“It is the type of tax that was necessary, of course including the other taxes as well… Necessary in order to ensure that government does (not) drastically cut service to the communities, but also to ensure that we cover the shortfall that was the result of low revenue collection in this last financial year. However we must mention that Vat can always be reconsidered. It can always be discontinued, and in fact South Africa has the lowest Vat in the world especially among the developing countries.”
