VAT increase will affect govt spend - KZN Finance MEC

VAT increase will affect govt spend - KZN Finance MEC

Consumers are not the only ones who're going to be hit by the VAT increase next month. 

MEC, Belinda Scott
Steve Bhengu

The KZN Finance Department says the hike will also affect the different departments in the province. 

MEC Belinda Scott tabled the KZN budget for the next financial year in Pietermaritzburg on Friday. 

ALSO READ: Treasury explains VAT increase for average consumer

The VAT hike from 14 to 15% kicks in on the first of April. Scott said the increase will probably affect procurement. 

"The increase of VAT was not an easy decision. We have much less money now and we are looking at a structural deficit which means the country is spending more than what it receives as revenue. This means that in order to bridge that gap - between what we spend and what we earn - we have to borrow. Our borrowings have reached alarming levels," Scott said. 

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