Johannesburg – The South African government canceled a proposed tax increase on Thursday threatened to collapse the unit of the unit After a rejection of several political parties.
The Minister of Finance, Enoch Godongwana, announced that the Government would no longer implement a 0.5% increase in the Value Added Tax (VAT), payable in goods and services, including food and electricity, which would have increased to 15.5%.
The proposed VAT increase is the last contentious problem facing the Unit Government which was formed after the party of the African National Congress its parliamentary majority lost For the first time since he came to power in 1994.
“The decision to resign the increase follows the extensive consultations with political parties and a careful consideration of the recommendations of the parliamentary committees,” Godongwana said in a statement early.
The government sought to increase tax revenues through VAT increase, and Godongwana said the estimated revenues would fall short of around $ 4 billion.
The democratic alliance, the second largest political party in the country and the coalition government, opposed the increase in VAT and voted against the annual budget that initially proposed.
Subsequently, the Prosecutor’s Office challenged the matter in court this week and claimed the victory on Thursday, saying that the cancellation of the tax increase was a victory for all South Africans.
“We will continue to fight for all South Africans, especially the poor and marginalized, by seeking responsible public spending so that the government does not continue to increase taxes to finance illegal expenses, corruption and pure waste,” said the federal president of DA, Helen Zille.
The opposition and civil society parties have also criticized the proposed increase as Antiporda.
According to official statistics, more than 20 million people in South Africa depend on welfare subsidies, with the unemployment rate of more than 32%, according to official statistics.
This is the last disagreement between the two main parts After the government’s formation last year.
ANC and DA have ideological differences in issues that include foreign policy, agrarian reform, education and reforms of the health sector.
