Godongwana holds final say on VAT hike decision: Maswanganyi

Chairperson of the Standing Committee on Finance in Parliament, Joe Maswanganyi, says the decision to implement the proposed 0.5% Value Added Tax (VAT) increase rests solely with Finance Minister Enoch Godongwana.

The proposed increase has drawn disagreement from members of the Government of National Unity (GNU). If implemented, the VAT adjustment is expected to take effect on 1 May.

Maswanganyi says any reversal of the proposal would require the Minister to follow the proper legislative process.

“If now he decides otherwise, he has to follow a legal process to reverse that decision that he has taken, which I don’t know the decisions that the Minister will take after the recommendations of the Parliament,” Maswanganyi said.

He further warns that failure by Parliament to pass key financial Bills would have serious implications.

“If the Parliament does not pass the Appropriation Bill and the Division of Revenue Bill it is going to put the country into a very serious crisis because it means that we can continue to spend on the money of the previous budget. You will not proceed after four months to spend the budget that is currently in Parliament,” he adds.

Budget Report | VAT hikes & other recommendations: Dr Joe Maswanganyi