ANC says proposed increase on VAT was 'carefully considered'

JOHANNESBURG - The African National Congress (ANC) said that the proposed increase on value-added tax (VAT) was a "carefully considered" hike to keep funding important government programmes.

The party held a media briefing in Johannesburg to reflect on the proposed budget presented by Finance Minister Enoch Godongwana to Parliament on Wednesday.

One of the main issues in Thursday's budget proposal was the one percent increase to VAT over the next two financial years.

ANC Secretary-General Fikile Mbalula said the decision to hike VAT was difficult but necessary.

"It’s a carefully measured intervention designed to sustain government revenue without disproportionately affecting the poor. The ANC recognises the concerns of working class families, which is why mitigation measures, including expanded zero-rated VAT baskets, real increases in social grants and fuel levy relief have been prioritised."