VAT raised, sugar tax launched as deficit balloons

Finance Minister Thapelo Matsheka PIC. KENNEDY RAMOKONE
Finance Minister Thapelo Matsheka PIC. KENNEDY RAMOKONE

Finance and Economic Development minister, Thapelo Matsheka this afternoon confirmed that Value Added Tax would rise to 14% from April, while a new sugar tax would be introduced this year as part of measures to restore fiscal stability in the face of mounting budget deficits.

According to his budget speech delivered to a virtual parliament, the 2020/21 financial year which ends on March 31 is expected to reflect a deficit of P21 billion, the highest in history according to available statistics.

“This is an extremely serious deterioration of our fiscal position and it has resulted in a rapid depletion of our reserves in the Government Investment Account,” Matsheka said.

Editor's Comment
Prosecutors deserve better

These legal professionals, who are entrusted with upholding the rule of law, face numerous challenges that compromise their ability to effectively carry out their duties.Elsewhere in this edition, we carry a story on the lamentations of the officers of court.The prosecutors have raised a number of concerns, calling for urgent attention from all relevant stakeholders, including the President, Minister of Justice and the Attorney General. Their...

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