Treasury appeared before the four finance committees of Parliament where Members of Parliament (MPs)could analyse this week’s budget.

On Wednesday, Godongwana announced a 0.5 percentage point increase in Value Added Tax (VAT).

This is after the budget tabling was postponed last month, due to disagreements within the Government of National Unity partners over a proposed two percent VAT increase.

Godongwana told MPs that the VAT increase is necessitated by the need to improve social services, such as health for the poor.

“The health budget had been so eroded; the accruals amount to R21 billion ($1 154 billion). Now, if all of us care about the poor, whose services had been eroded, as much as we have different views on matters, we keep our eyes on the ball.”

--SABC--