2% VAT hike will fix SA’s budget shortfall. Does Gigaba have the stomach for it?

Malusi Gigaba at a briefing. Picture: AFP

Will Minister of Finance Malusi Gigaba announce an increase in the VAT rate?

If so, by how much?

Increasing the VAT rate may be a quick and effective fix to plug the R50 billion budget shortfall.

Hiking it by 1% will bring in an additional R22 billion, while a 2% hike will just about solve the country’s fiscal nightmare by bringing in an extra R48 billion.

The Money Show’s Bruce Whitfield interviewed Lesley O'Connell, VAT and Indirect Tax Partner at PwC South Africa.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

I don’t think the Minister has a choice… We all thought last year was the year… What's easier to do than to increase the VAT rate?

Lesley O'Connell, PwC

Do the poor still eat fresh fruit and vegetables? Lentils? Brown bread?

Lesley O'Connell, PwC

VAT brings in a third of revenue…

Lesley O'Connell, PwC

If people stop stealing money there’ll be a lot more in the kitty too!

Bruce Whitfield

You need something big to plug that hole…

Lesley O'Connell, PwC

The best way to do it is to remove zero ratings… and then subsidise the poor…

Lesley O'Connell, PwC

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Working abroad? New rules are coming! You're probably breaking the existing ones

Working abroad? New rules are coming! You're probably breaking the existing ones

Bruce Whitfield interviews Warren Ingram, a Personal Financial Advisor and Executive Director at Galileo Capital.

Dr Adriana Marais was on her way to the Red Planet. Then Mars One collapsed

Dr Adriana Marais was on her way to the Red Planet. Then Mars One collapsed

The Money Show’s Bruce Whitfield interviews Marais, a quantum biology researcher with dreams to live on Mars.

'Get ready for tax levy to save Eskom, because the money is simply not there'

'Get ready for tax levy to save Eskom, because the money is simply not there'

Eskom has so much debt it threatens to break South Africa. Bruce Whitfield interviews Dr Adrian Saville of Cannon Asset Managers.

Meet Abel Sithole, the man in charge of R1.6 trillion in Government pensions

Meet Abel Sithole, the man in charge of R1.6 trillion in Government pensions

The Money Show’s Bruce Whitfield interviews Abel Sithole, Principal Executive Officer at the GEPF, Africa’s largest pension fund.

5 strategies for keeping calm when Eskom sheds a load (by Prof Renata Schoeman)

5 strategies for keeping calm when Eskom sheds a load (by Prof Renata Schoeman)

Psychiatrist Renata Schoeman has tips and tricks to help you cope without blowing a fuse.

Cheekily named load shedding app EskomSePush goes from 2500 to 400 000 users

Cheekily named load shedding app EskomSePush goes from 2500 to 400 000 users

It’s now the most downloaded IOS app and 2nd most downloaded Android app in SA. Bruce Whitfield interviews co-founder Dan Wells.

Popular articles
DStv subscription price hikes for 2019

DStv subscription price hikes for 2019

MultiChoice will increase the prices of certain DStv packages from 1 April.

Dr Adriana Marais was on her way to the Red Planet. Then Mars One collapsed

Dr Adriana Marais was on her way to the Red Planet. Then Mars One collapsed

The Money Show’s Bruce Whitfield interviews Marais, a quantum biology researcher with dreams to live on Mars.

'Get ready for tax levy to save Eskom, because the money is simply not there'

'Get ready for tax levy to save Eskom, because the money is simply not there'

Eskom has so much debt it threatens to break South Africa. Bruce Whitfield interviews Dr Adrian Saville of Cannon Asset Managers.

McBride's testimony could implicate MPs in state capture

McBride's testimony could implicate MPs in state capture

Ipid boss Robert McBride is expected to implicate 30 high profile individuals including Members of Parliament in his testimony.

Agrizzi gives the Mokgoro Commission the cold shoulder fearing charges

Agrizzi gives the Mokgoro Commission the cold shoulder fearing charges

Angelo Agrizzi's legal team wrote to the commission informing it that he won't be testifying following being criminally charged.

South Africa just became the world’s hottest destination for oil exploration

South Africa just became the world’s hottest destination for oil exploration

The Money Show’s Bruce Whitfield interviews Stephen Larkin, CEO at Africa New Energies.

[WATCH] Baby hilariously tries to eat mom's burritos

[WATCH] Baby hilariously tries to eat mom's burritos

Khabazela shares tweets and Facebook posts that have gone viral.